In order to protect the health, safety, and property of the people of Rhode Island, and to promote their welfare, no person shall practice architecture in this state except in compliance with the requirements of this chapter.
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History of Section.
P.L. 1977, ch. 232, § 2.
Repealed Sections.
The former chapter (P.L. 1936, ch. 2327, §§ 1 to 28; G.L. 1938, ch. 401, §§ 1 to 28; P.L. 1955, ch. 3524, § 1; G.L. 1956, §§
5-1-1
to 5-1-29), concerning architects, was repealed by P.L. 1977, ch. 232, § 1, effective January 31, 1978. Section 2 of P.L. 1977, ch. 232 enacted the present provisions of this chapter concerning the same subject.
Cross References.
Division of Building, Design and Fire Professionals, §
5-84-3
.
Professional engineers’ licensing requirement, exemption, §
5-8-21
.
Professional service corporations, §
7-5.1-1
et seq.
Comparative Legislation.
Architects:
Conn.
Gen. Stat. § 20-288 et seq.
Mass.
Ann. Laws ch. 112, § 60A et seq.
Collateral References.
Architect’s liability for personal injury or death from improper plans or design. 97 A.L.R.3d 455.
Architectural drawings or illustrations as exempt from sales or use tax. 27 A.L.R.5th 794.
Failure to procure business or occupational license as affecting enforceability of contract or right of recovery for work done. 44 A.L.R.4th 271.
Grant or denial of license to practice architecture. 2 A.L.R.4th 1103.
Liability of architect for improper issuance of certificate. 43 A.L.R.2d 1227.
Recovery back of money paid to unlicensed person required by law to have occupational or business license or permit to make contract. 74 A.L.R.3d 637.
What constitutes professional services within meaning of statute preserving individual liability of professional employees of professional corporation, association, or partnership. 31 A.L.R.4th 898.
What constitutes publication of architectural plans, drawings, or designs, so as to result in loss of common law copyright. 77 A.L.R.2d 1048.
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5-1-2.
Definitions.
The following definitions apply in the interpretation of the provisions of this chapter, unless the context requires another meaning:
“Architect” means any person who engages in the practice of architecture, as that term is defined in this section, as attested by his or her licensing as an architect in this state.
“Board” means the board of examination and registration of architects established by this chapter.
“Certificate” means the certificate of registration issued annually by the board, indicating that the individual named in the certificate is an architect.
“Certificate of authorization” means the certificate of authorization issued by the board, indicating the sole proprietor, partnership, limited-liability partnership, corporation, or limited-liability company named in the certificate is permitted to practice architecture in the state.
“Department” means the department of business regulation.
“Director” means the director of the department of business regulation or his or her designee.
“Practice of architecture” means rendering or offering to render those services, described as follows:
Rendering or offering to render services in connection with the design and construction, enlargement, or alteration of a building or group of buildings and the space within and surrounding the buildings that have as their principal purpose human occupancy or habitation;
The services referred to in this section include, but are not limited to, planning, providing preliminary studies, designs, drawings, specifications, and other technical submissions, the administration of construction contracts, and the coordination of any elements of technical submissions prepared by others including, as appropriate and without limitation, consulting engineers and landscape architects;
The practice of architecture does not include the practice of engineering as defined in §
5-8-2(h)(1)
, but a registered architect may perform any engineering work that is incidental to the practice of architecture.
“Responsible control” means that amount of control over and detailed knowledge of the content of technical submissions during their preparations as is ordinarily exercised by registered architects applying the required professional standard of care. Reviewing, or reviewing and correcting, technical submissions after they have been prepared by others does not constitute the exercise of responsible control because the reviewer has neither control over nor detailed professional knowledge of the content of such submissions throughout their preparation.
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5-1-3.
Board — Membership — Appointments and term.
There is established a board of examination and registration of architects, composed of five (5) architects. Each member of the board must be a qualified elector of this state for three (3) consecutive years prior to appointment. Each member of the board shall have engaged in the practice of architecture, as defined by this chapter, as an individual practitioner; a partner of a partnership or limited-liability partnership; an officer or director of a corporation; or a member or manager of a limited-liability company engaged in the practice of architecture, for not less than seven (7) years prior to his or her appointment.
Each member of the board shall be appointed by the governor, with the advice and consent of the senate, to serve for a term of five (5) years and until a successor is appointed and qualified. No member of the board shall be associated in the practice of architecture, either individually or as a member of a firm, with any other member of the board.In the year 2009, staggered terms shall be implemented as follows:
One member is appointed for a period of one year;
One member is appointed for a period of two (2) years;
One member is appointed for a period of three (3) years;
One member is appointed for a period of four (4) years; and
One member is appointed for a period of five (5) years.
Vacancies occurring in the membership of the board shall be filled by the governor, with the advice and consent of the senate, for the unexpired portion of the term. A member appointed for a full term is not eligible for more than two (2) consecutive terms.
Each member of the board shall take, and subscribe to, the oath of office generally required of state officials.
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5-1-4.
Board — Organizational and special meetings — Quorum — Seal.
A regular meeting of the board shall be held in May of each year, at which time the board shall elect from its membership a chairperson, a vice-chair, and a secretary, who shall serve for one year and until their successors are elected and qualified. Special meetings of the board may be called by the chairperson or other members of the board, in accordance with any rules and regulations that the board adopts.
Three (3) members of the board shall constitute a quorum for the transaction of all business, but no action shall be taken at any meeting without three (3) members in accord.
The board shall adopt a seal.
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History of Section.
P.L. 1977, ch. 232, § 2.
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5-1-5.
Board — Rules and regulations — Examination and registration powers.
Subject to the approval of the director, the board may establish any rules and regulations for the conduct of its own proceedings that it deems appropriate.
Subject to the approval of the director, the board may establish suitable rules and regulations for the examination and registration of architects; the practice of the profession of architecture; and the issuance and renewal of certificates that it deems appropriate, including rules for the issuance of certificates by reciprocity. This shall not include any prohibition of employment of the registered architect as he or she chooses.
To be registered, the applicant shall be required to pass examinations and grading procedure of the National Council of Architectural Registration Boards, provided that the applicant is qualified under §
5-1-8(a)
and (b).
With the assistance of the department, the board shall issue and renew certificates to individuals who have qualified to practice architecture under the provisions of this chapter. Any party aggrieved by the board’s decision regarding license issuance or renewal may, within ten (10) days of the decision, appeal the matter to the director by submitting a written request for a formal hearing to be conducted in accordance with the provisions of §
5-1-13.1
.
The board has the power to take all action that is necessary and proper to effectuate the purposes of this chapter, including the power to:
Recommend that the director hold formal hearings in accordance with the provisions of §
5-1-13
.1 to determine whether to suspend, revoke, annul, or take other permitted action with respect to certificates of registration and certificates of authorization in accordance with the provisions of this chapter;
Investigate all complaints and charges of unprofessional conduct, including, but not limited to, conduct specified under §
5-1-13
, against any licensee or any applicant for a certificate of registration or certificate of authorization;
Appoint one or more members of the board and/or an independent investigator to act on behalf of the board in investigating the conduct of any licensee, or of any applicant for a certificate of registration or certificate of authorization, or in the alternative to appoint a probable-cause committee to investigate this conduct on its behalf. The committee is to be comprised of licensees in good standing, as the board determines;
Examine witnesses in connection with any investigation conducted under the authority of this chapter;
Enter into consent agreements or informal resolutions with any party under investigation for violations under this chapter or chapter 84 of this title; and
Participate in formal proceedings through representation by the department’s legal staff acting as the prosecuting agent before the director.
The state shall indemnify the department and board and the members, employees, or agents thereof, and hold them harmless from any and all costs, damages, and reasonable attorney’s fees arising from or related in any way to claims or actions or other legal proceedings taken against them for any actions taken in good faith in the intended performance of any power granted under this chapter or for any neglect or default in the performance or exercise in good faith of that power.
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5-1-6.
Board — Records of proceedings — Roster of architects — Report of transactions.
The board executive of the board shall keep a record of its proceedings. The record shall include the name, age, and last known address of each applicant for registration; information concerning each applicant’s education, experience, and other qualifications; the text of all examinations administered and their results; and any other information that the board deems appropriate. The record of the board is prima facie evidence of the proceedings and a certified transcript by the board executive is admissible in evidence with the same force and effect as if the original were produced.
The board shall maintain a roster of architects. Copies of the roster may be mailed annually to resident architects and to federal agencies within the state, and to state, city, and town officials, and may be distributed or sold to the public.
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5-1-7.
Practice prohibited — Criminal penalties — Injunctions.
No individual shall:
Practice or offer to practice architecture in this state;
Use any title, sign, card, or device implying that the individual is an architect or is competent to practice architecture in this state;
Use in connection with his or her name, or otherwise, any title or description conveying or tending to convey the impression that the individual is an architect or is competent to practice architecture in this state; or
Use or display any words, letters, figures, seals, or advertisements indicating or implying that the individual is an architect or is competent to practice architecture in this state, unless that individual holds a currently valid certificate of registration/authorization issued pursuant to this chapter or is specifically exempted from holding a certificate under the provisions of this chapter.
No sole proprietorship, partnership, limited-liability partnership, corporation, or limited-liability company shall:
Practice or offer to practice architecture in this state;
Use any title, sign, card, or device implying that the sole proprietorship, partnership, limited-liability partnership, corporation, or limited-liability company is competent to practice architecture in this state;
Use in connection with its name, or otherwise, any title or description conveying or tending to convey the impression that the entity is an architectural firm or is competent to practice architecture in this state; or
Use or display any words, letters, figures, seals, or advertisements indicating that the entity is an architectural firm or is competent to practice architecture in this state, unless that sole proprietorship, partnership, limited-liability partnership, corporation, or limited-liability company complies with the requirements of this chapter.
Any individual, sole proprietorship, limited-liability partnership, corporation, or limited-liability company that: (1) violates subsection (a) or (b) of this section; (2) presents or attempts to use the certificate of registration/authorization of another; (3) gives any false or forged evidence of any kind to the department, board, or to any member of the board in obtaining or attempting to obtain a certificate of registration/authorization; (4) falsely impersonates any other registrant whether of a like or different name; (5) uses or attempts to use an expired, revoked, or nonexistent certificate of registration/authorization; (6) falsely claims to be registered under this chapter; or (7) otherwise violates any provision of this chapter; is guilty of a misdemeanor, and upon conviction by a court of competent jurisdiction, shall be sentenced to pay a fine of not more than one thousand dollars ($1,000) for the first offense and a fine of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000) for each subsequent offense, or imprisonment for not more than one year, or both; and in the court’s discretion and upon good cause shown, reimburse the department for any and all fees, expenses, and costs incurred by the department and/or board in connection with the proceedings, including attorney’s fees (which amounts shall be deposited as general revenues); and be subject to, in the director’s discretion, public censure or reprimand.
Either on his or her own initiative or on the recommendation of the board, the director has the power to institute injunction proceedings in superior court to prevent violations of subsection (a) or (b) or violations of §
5-1-12
. In injunction proceedings, the director is not required to prove that an adequate remedy at law does not exist, or that substantial or irreparable damage would result from continued violations. The superior court, in its discretion and in addition to any injunctive relief granted to the department, may order that any person or entity in violation of this section shall:
Upon good cause shown, reimburse the department for any and all fees, expenses, and costs incurred by the department and/or board in connection with the proceedings, including attorney’s fees (which amounts shall be deposited as general revenues); and/or
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5-1-8.
Examination and qualifications of applicants for certificates of registration.
Any individual who is at least twenty-one (21) years of age may apply for a certificate of registration under this chapter.
Each applicant for a certificate of registration shall submit satisfactory evidence to the board that he or she holds a National Architectural Accrediting Board (NAAB) professional degree in architecture from an accredited school and has had any practical experience, including academic training, that the board, by regulations uniformly applied, deems appropriate. The board may, in its discretion, adopt as its standards for minimum experience the guidelines on practical experience of the National Council of Architectural Registration Boards.
Each applicant for a certificate of registration who satisfies subsection (a) of this section and holds a professional degree in architecture as described in subsection (b) of this section shall submit to a registration examination. Results of the examination are announced within ninety (90) days of the date on which the examination commenced. The board shall adopt the examinations and recommended grading procedures of the National Council of Architectural Registration Boards.
The board may require applicants under this section and under §
5-1-9
to submit to a personal interview.
A nonresident licensed architect seeking to practice architecture in the state of Rhode Island shall, upon application, obtain a certificate of registration by submitting satisfactory evidence to the board that he or she is registered to practice architecture in another state, and that he or she has fulfilled the requirements for National Council of Architectural Registration Board’s certification. The board shall act upon the application for a certificate of registration within forty-five (45) days of submission of evidence that the applicant is registered in that manner.
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5-1-10.
Issuance and renewal of certificates.
Upon payment of the fees required by §
5-1-11
, an individual who has complied with §
5-1-8
or §
5-1-9
is entitled to a certificate of registration indicating that he or she is qualified to practice architecture in this state. Each certificate of registration shall contain the name of the individual to whom it was issued and his or her date of birth.
Every certificate of registration is valid for a period of two (2) years and expires on the last day of December of each odd-numbered year following its issuance. An architect may renew his or her certificate of registration by paying the renewal fee or fees required by §
5-1-11
. An architect who fails to renew his or her certificate of registration prior to December 31 may not thereafter renew his or her certificate of registration except upon payment of the renewal fee or fees and the additional fee required by §
5-1-11
. The board may require all applicants for renewal to provide the board with information, including, but not limited to, a brief outline setting forth the professional activities of any applicant during a period in which a certificate of registration has lapsed and other evidence of the continued competence and good character of the applicant, all as the board deems necessary.
[Deleted by P.L. 2015, ch. 82, § 2 and P.L. 2015, ch. 105, § 2].
Failure to obtain occupational or business license or permit as defense to tort action. 13 A.L.R.2d 157.
License, failure of architect to procure, as affecting validity or enforceability of contracts. 30 A.L.R. 851; 42 A.L.R. 1226; 118 A.L.R. 646.
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5-1-11.
Fees — Payment and disposition.
The fees paid by an applicant for filing an application for examination, for the examination; for reexamination; for registration pursuant to §
5-1-9
; for annual renewal; or for renewal of an expired certificate; shall be sixty dollars ($60).
All fees or other monies collected under the provisions of this chapter shall be deposited as general revenues. The controller is authorized and directed to draw his or her orders upon the general treasurer for payment from the fund, upon receipt by the controller of vouchers authenticated by the chairperson or secretary of the board.
The fees paid by an applicant for a certificate of authorization pursuant to this section for annual renewal; for renewal of an expired certificate of authorization; or for issuance of a duplicate certificate of authorization; shall be sixty dollars ($60).
Every architect shall obtain a stamp designated and approved by the board, and shall impress that stamp on drawings and specifications prepared by him or her or under his or her responsible control for use in this state. An architect who impresses his or her stamp, or knowingly permits it to be impressed on drawings or specifications that were not prepared by him or her or under his or her responsible control is guilty of a misdemeanor and is subject to the penalties provided in §
5-1-7(c)
. Any person who impresses an architect’s stamp, or knowingly permits it to be impressed on drawings and specifications after the architect’s certificate of registration has expired, or has been revoked, annulled, or suspended, is guilty of a misdemeanor and is subject to the penalties provided in §
5-1-7(c)
.
Upon forfeiture, revocation, suspension, annulment of his or her certificate of registration, or upon expiration of his or her certificate of registration without renewal, an architect shall surrender his or her stamp to the board.
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5-1-13.
Revocation or suspension of certificates of registration or of authorization.
After notice and hearing as provided in §
5-1-13.1
, the director may: (1) Suspend, revoke, annul, or take other permitted action with respect to any certificate of registration; and/or (2) Suspend, revoke, annul, or take other permitted action with respect to any certificate of authorization; and/or (3) Publicly censure, reprimand, or censure in writing; and/or (4) Limit the scope of practice of; and/or (5) Impose an administrative fine upon (not to exceed one thousand dollars ($1,000) for each violation); and/or (6) Place on probation; and/or (7) For good cause shown, order a reimbursement of the department for all fees, expenses, costs, and attorney’s fees in connection with the proceedings (which amounts shall be deposited as general revenues), all with or without terms, conditions, or limitations, holders of a certificate of registration or a certificate of authorization (subsequently referred to as a licensee or licensees) for any one or more of the causes set out in subsection (b) of this section.
The director may take actions specified in subsection (a) of this section for any of the following causes:
Bribery, fraud, deceit, or misrepresentation in obtaining a certificate of registration or certificate of authorization;
Practicing architecture in another state, country, or jurisdiction in violation of the laws of that state, country, or jurisdiction;
Practicing architecture in this state in violation of the standards of professional conduct established by the board and approved by the director;
Fraud, deceit, recklessness, gross negligence, misconduct, or incompetence in the practice of architecture;
Use of an architect’s stamp in violation of §
5-1-12
;
Violation of any of the provisions of this chapter or chapter 84 of this title;
Suspension or revocation of the right to practice architecture before any state or before any other country or jurisdiction;
Conviction of or pleading guilty or nolo contendere to any felony, or to any crime of, or act constituting a crime of, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any other similar offense, in a court of competent jurisdiction of this state or any other state or of the federal government;
Failure to furnish to the department, board, or any person acting on behalf of the department and/or board, within sixty (60) days of notification, any information that may be legally requested by the department and/or board;
In conjunction with any violation of subsections (b)(1) — (b)(9), any conduct reflecting adversely upon the licensee’s fitness to engage in the practice of architecture; and
In conjunction with any violation of subsections (b)(1) — (b)(9), any other conduct injurious to the reputation of the architectural profession.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-1-13.1.
Initiation of proceedings — Hearings before the department — Appeals — Notice to other states.
The director may initiate formal proceedings under this chapter against holders of a certificate of registration and/or a certificate of authorization (subsequently referred to as a licensee or licensees) either on his or her own motion; upon recommendation of the board; on complaint of any person; or upon receiving notification from another state board of architects or from the appropriate authority in another country or jurisdiction; of its decision to:
Revoke, suspend, annul, or refuse to renew the practice privileges granted in that state or in that country or jurisdiction to the licensee; or
Publicly censure, or censure in writing, limit the scope of practice of, impose an administrative fine upon, or place on probation the licensee.
A written notice stating the nature of the charge or charges against the licensee and the time and place of the hearing before the department on the charges shall be served on the licensee not less than twenty (20) days prior to the date of the hearing either personally or by mailing a copy of the notice by certified mail, return receipt requested, to the address of the licensee last known to the board.
If, after being served with the notice of hearing as provided for in this section, the licensee fails to appear at the hearing and to defend against the stated charges, the department may proceed to hear evidence against the licensee and may enter any order that is justified by the evidence. That order is final unless the licensee petitions for a review of it as provided in this section; provided, that within thirty (30) days from the date of any order, upon a showing of good cause for failing to appear and defend, the department may reopen the proceedings and may permit the licensee to submit evidence in his, her, or on its behalf.
At any hearing pursuant to this section, the licensee may:
Appear in person or be represented by counsel;
Produce evidence and witnesses on his, her, or its behalf;
Cross-examine witnesses; and
Examine the evidence that is produced.
A sole proprietorship may be represented before the department or board by counsel or by the sole proprietor. A partnership or limited-liability partnership may be represented before the department or board by counsel or any partner of the partnership. A corporation may be represented by counsel before the department or board or by any shareholder, officer, or director of the corporation. A limited-liability company may be represented before the department or board by counsel or by any member or manager of the limited-liability company. The licensee is entitled, upon written application to the board, to the issuance of subpoenas to compel the attendance of witnesses on the licensee’s behalf.
The director may issue subpoenas to compel the attendance of witnesses and the production of documents and may administer oaths, take testimony, hear proofs, and receive exhibits in evidence in connection with or upon hearing pursuant to this chapter. In case of disobedience to a subpoena, the director may petition the superior court to require the attendance and testimony of witnesses and the production of documentary evidence.
The department is not bound by strict rules of procedure or by laws of evidence in the conduct of its proceedings, but any findings of fact and conclusions of law made by the director must be based upon sufficient legal evidence.
Recordings of all hearings pursuant to this section shall be in accordance with the department’s rules of procedure for administrative hearings.
Any appeal from the decision of the director, by a person or persons adversely affected by the decision, is governed by §
42-35-15
.
On the director rendering a decision to: (1) revoke, suspend, or annul a certificate of registration issued under the laws of this state; (2) revoke, suspend, or annul a certificate of authorization issued under the laws of this state; or (3) publicly censure, censure in writing, limit the scope of practice of, impose an administrative fine upon, or place on probation a licensee, the board shall examine its records to determine whether the licensee holds a certificate of registration or a certificate of authorization to practice in any other state, country, or jurisdiction. If the board determines that the licensee in fact holds a certificate of registration or certificate of authorization, the board shall immediately notify the board of architecture of the other state, country, or jurisdiction by mail of the director’s decision pursuant to this section, and include in the notice an indication as to whether or not the licensee has appealed the decision.
The director may, in his or her discretion, order any licensee against whom proceedings have been initiated under §
5-1-13
and this section to reimburse the department for any fees, expenses, and costs incurred by the department and/or in connection with the proceedings, including attorney’s fees. These fees shall be paid within thirty (30) days from the date they are assessed and may be reviewed in accordance with §
42-35-15
, and deposited as general revenues.
The board may, in its discretion, issue a certificate of registration or certificate of authorization to any applicant denied a certificate of registration or certificate of authorization, under any of the provisions of this section upon presentation of suitable evidence.
The department shall make its legal staff available to act as legal advisor to the board and render any legal assistance that is necessary in carrying out the provisions of this chapter. The director may employ other counsel and obtain other necessary assistance to aid in the enforcement of this chapter, and the compensation and expenses for the employment shall be paid from the fund of the department.
Nothing contained in this chapter shall be construed to prohibit practices normally permitted to employees, engineers, contractors, and others, including the following:
A draftsperson, student, superintendent, or other employee of a lawfully practicing registered architect acting under the instruction, responsible control, and supervision of his or her employer. This chapter does not prevent the employment of a superintendent of the construction, enlargement, or alteration of a building or part of a building who acts under the immediate responsible control of the registered architect by whom the plans and specifications of the building, enlargement, or alteration were prepared.
A registered professional engineer doing architectural work as may be incident to the practice of his or her engineering profession, not to exceed thirty-five thousand (35,000) cubic feet of enclosed space, provided all drawings for that construction are signed by the author of the drawing with his or her true appellation as a “registered professional engineer” without the use in any form of the title “architect.”
The construction or alteration of any single-family or two-family house or any minor accessory building to it by a person other than a registered architect.
The construction or alteration of any building used for farm purposes, as long as it is not for human habitation or occupancy, by a person other than a registered architect.
The provisions of this chapter are severable, and if any section is declared invalid or void for any reason, the remainder of this chapter is not affected or impaired.
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History of Section.
P.L. 1977, ch. 232, § 2.
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5-1-15.1.
Certificate of authorization for sole proprietorships, partnerships, limited-liability partnerships, corporations, or limited-liability companies.
A sole proprietorship, partnership, limited-liability partnership, corporation, or limited-liability company shall be admitted to practice architecture in this state if:
Two-thirds (2/3) of the partners (if a partnership or limited-liability partnership), two-thirds (2/3) of the directors and officers (or shareholders if there are no directors, if a corporation), or two-thirds (2/3) of the managers (or members if there are no managers, if a limited-liability company) are registered under the laws of any state or any reciprocal jurisdiction as defined by the National Council of Architectural Registration Boards to practice architecture or engineering;
One-third (1/3) of the partners (if a partnership or limited-liability partnership), or one-third (1/3) of the directors and officers (or shareholders if there are no directors, if a corporation), or one-third (1/3) of the managers (or members if there are no managers, if a limited-liability company) are registered under the laws of any state or reciprocal jurisdiction as defined by the National Council of Architectural Registration Boards to practice architecture; and
The person having the practice of architecture in his or her charge is himself or herself a partner (if a partnership or limited-liability partnership), a director or officer (or shareholder if there are no directors, if a corporation), or a manager (or member if there are no managers, if a limited-liability company) and registered to practice architecture in this state.
The board is empowered to require any sole proprietorship, partnership, or limited-liability partnership, corporation, or limited-liability company practicing architecture in this state to file information concerning its partners, shareholders, officers, directors, members, managers, and other aspects of its business organization, upon any forms that the board prescribes.
The practice, or offer to practice, architecture as defined by this chapter by a sole proprietorship, partnership, limited-liability partnership, corporation, or limited-liability company, subsequently referred to as the “firm,” through one or more architects registered under the provisions of this chapter, is permitted provided that the registered architect or architects are in direct control of the practice or exercise responsible control of all personnel who act in behalf of the firm in professional and technical matters; and provided that the firm has been issued a certificate of authorization by this board.
Every firm must obtain a certificate of authorization from this board, and those individuals in direct control of the practice or who exercise responsible control of all personnel who act in behalf of the firm in professional and technical matters must be registered with the board. The certificate of authorization shall be issued by the board upon satisfaction of the provisions of this chapter and the payment of a fee as determined by the board in accordance with §
5-1-11
. This fee shall be waived if the firm consists of only one person who is the registered architect. Every firm must file an application for a certificate of authorization with the board on a form provided by the board.
Every certificate of authorization is valid for a period of two (2) years and expires on the last day of December of each even-numbered year following its issuance. A separate form provided by the board shall be filed with each renewal of the certificate of authorization. The firm shall complete a renewal form within thirty (30) days of the time any information previously filed with the board has changed, is no longer true or valid, or has been revised for any reason. If, in the board’s judgment, the information contained on the application and/or renewal form is satisfactory and complete, the board will issue a certificate of authorization for the firm to practice architecture in this state. The board may require all applicants for renewal to provide the board with information, including but not limited to, a brief outline setting forth the professional activities of any applicant during a period in which a certificate of authorization has lapsed and other evidence of the continued competence and good character of the applicant, all as the board deems necessary.
In the event of ownership transition or change in the responsible control of a firm, the board may permit a six-month (6) grace period to allow a Rhode Island registered architect to continue to practice until a new certificate of authorization is issued.
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5-1-16.
Architects rendering assistance during disaster emergency — Immunity from civil liability.
An architect or architectural firm, duly licensed to practice in Rhode Island under this chapter, who or that voluntarily and without compensation provides architectural services at the scene of a disaster emergency is not liable for any personal injury, wrongful death, property damage, or other loss or damages caused by an act or omission of the architect or architectural firm in performing the services.
As used in this section, “disaster emergency” means a disaster emergency declared by executive order or proclamation of the governor pursuant to chapter 15 of title 30.
The immunity provided in subsection (a) of this section applies only to the practice of architecture as defined in this chapter regarding an architectural service that:
Concerns any building, structure, or system, whether publicly or privately owned, that is identified pursuant to a disaster emergency executive order or proclamation;
Relates to the structural integrity of the entire building, structure, or system, or any portion of the structure or system, or to a nonstructural element of the structure or system, affecting public safety; and
Is rendered during the time in which a state of disaster emergency exists, as provided in chapter 15 of title 30.
The immunity granted by this section shall not apply to acts or omissions constituting gross negligence or willful misconduct.
In the event that the governor of Rhode Island declares a state disaster, all registered architects with a National Council of Architectural Registration Boards (NCARB) certification will be allowed to practice for a period of ninety (90) days from the date of the declared disaster.
Chapter 2 Bowling Alleys, Billiard Tables, and Shooting Galleries
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5-2-1.
City and town regulation and taxation of bowling alleys and billiard tables.
The town and city councils of the several towns and cities may tax, regulate, and, if they find it expedient, prohibit and suppress, bowling alleys and billiard tables in their respective cities and towns, conforming to law.
Discriminatory practices as to accommodations prohibited, §
11-24-1
et seq.
Employment of minors in hazardous places or occupations, §
28-3-9
.
Comparative Legislation.
Billiard and pool rooms:
Conn.
Gen. Stat. § 53-280 et seq.
Mass.
Ann. Laws ch. 140, § 177 et seq.
Collateral References.
Licensing and regulation of pool and billiard rooms and bowling alleys. 20 A.L.R. 1482; 29 A.L.R. 41; 53 A.L.R. 149; 72 A.L.R. 1339.
Zoning or licensing regulation prohibiting or restricting location of billiard rooms and bowling alleys. 100 A.L.R.3d 252.
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5-2-2.
Refusal of bowling alley, box ball alley, or billiard table keeper to comply with order of the city or town council.
The keeper of any bowling alley, box ball alley, or billiard table who refuses or neglects to comply with an order or decree relating to it, which any city or town council is authorized to make, shall be fined fifty dollars ($50.00).
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5-2-3.
Keeper of bowling alley, box ball alley, or billiard table defined.
The owner or occupant of the premises on which any bowling alley, box ball alley, or billiard table is situated is deemed the keeper of that bowling alley, box ball alley, or billiard table, within the meaning of the provisions of this chapter.
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5-2-4.
Providence — Regulation of bowling alleys.
The bureau of licenses of the city of Providence may regulate bowling alleys in that city and make orders as to the manner of building and the hours of using bowling alleys; and in case an order is disobeyed, may issue their warrant, directed to the city sergeant or to any town constable, commanding him or her to take up and destroy any bowling alley kept in violation of that order; and every city sergeant or constable to whom a warrant is delivered shall immediately execute the warrant.
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5-2-5.
Licenses for shooting galleries required.
Every person who keeps any pistol gallery, rifle gallery, or other building, or other enclosure in any city or town of this state, where firearms are used, without a license from the city council or other licensing authority of the city or the town council of the town, shall be fined two hundred dollars ($200) for the first offense, and five hundred dollars ($500) for each subsequent offense.
Veteran’s certificate, renewal on discharge, §
30-20-1
.
Comparative Legislation.
Shooting galleries:
Mass.
Ann. Laws ch. 140, § 56A.
Collateral References.
Gun club, or shooting gallery or range, as nuisance. 26 A.L.R.3d 661.
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5-2-6.
Tax on bowling alleys and shooting galleries.
The city or town council of each city or town shall assess, levy, and collect a tax not exceeding twenty-five dollars ($25.00) nor less than five dollars ($5.00) per annum on every person who owns or keeps a bowling alley or box ball alley in the city or town, except in the city of Providence, for each bowling alley or box ball alley kept by him or her; and a tax not exceeding two hundred dollars ($200) per annum for each bowling alley in the city of Providence on its owner or keeper; and a tax not exceeding two hundred dollars ($200) per annum for each pistol gallery, rifle gallery, or other building or enclosure referred to in §
5-2-5
on its owner or keeper.
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5-2-7.
Bowling alley tax assessed against owner or occupant of building.
The city or town council may assess, levy, and collect the tax referred to in §
5-2-6
, for any bowling alley or box ball alley, of any person who owns or occupies the house or building in which the bowling alley or box ball alley is kept.
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5-2-8.
Collection and disposition of taxes.
The taxes referred to in §
5-2-6
shall be collected in the manner prescribed for the collection of city or town taxes and appropriated to the use of the city or town in which the tax is collected.
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5-2-9.
Sunday operation of bowling alleys and billiard tables.
Town or city councils or licensing authorities in any city or town may permit licensees operating bowling alleys, or persons paying a tax for the operation of a bowling alley, to operate rooms or places where bowling, playing of billiards, or pocket billiards for a fee or charge may be engaged in by patrons of those rooms or places on the first day of the week, subject to any restrictions and regulations that the city or town council or licensing authority designates; provided, that the operation of bowling alleys or rooms or places where bowling, playing of billiards, or pocket billiards for a fee or charge is permitted on the first day of the week only between the hours of one o’clock (1:00) p.m. and twelve o’clock (12:00) midnight; and provided, that no bowling alley or rooms or places where bowling, playing of billiards, or pocket billiards for a fee or charge is operated on the first day of the week within two hundred feet (200´) of a place of public worship used for public worship.
The operation of any bowling alley, room, or place between any hour on the last day of the week and one o’clock (1:00) a.m. on the first day of the week is not a violation of this section.
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History of Section.
G.L. 1923, ch. 129, § 23, as enacted by P.L. 1936, ch. 2398, § 1; G.L. 1938, ch. 362, § 21; G.L. 1956, §
5-2-9
; P.L. 1960, ch. 96, § 1.
Construction of statute or ordinance prohibiting or regulating sports and games on Sunday. 24 A.L.R.2d 813.
Validity, construction, and effect of “Sunday closing” or “blue” laws — modern status. 10 A.L.R.4th 246.
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5-2-10.
Licensing of billiard, bagatelle, pool, scippio tables and game rooms.
No person shall keep a billiard table, bagatelle table, pool table, scippio table, or any table of a similar character, in any saloon, shop, or place of business within this state, or own or keep any billiard, bagatelle, pool, or scippio table, or any table of a similar character, for public use or profit within this state, or operate a pinball or game room without a license from the city or town council of the city or town where the table is kept or used, first had and obtained. The city or town council may grant or refuse to grant licenses for these tables, and the licenses granted continue for a term not exceeding one year.
The term “pinball or game room,” as used in this section, means any public place, building, or room where three (3) or more gaming devices, machines, or apparatuses are kept for the use and entertainment of the public; or any place where the purpose of the business is to maintain three (3) or more machines, which, upon the insertion of a coin, slug, token, plate, or disc, may be operated by the public generally for use as a game or amusement whether or not registering a score and whether its operation demands skill or chance or both. The definition of game room is limited to those places that derive their principal source of income from those machines. Each city or town council may by ordinance prescribe any rules and regulations and may by ordinance determine the number of licenses to be issued that they deem necessary for the operation of pinball or game rooms; provided, that no game room located within one thousand feet (1,000´) of any elementary and/or secondary school in the city of Providence may open before four o’clock (4:00) p.m. on any school day.
A city ordinance providing for the licensing of juke boxes and mechanical amusement devices was null and void because licensing legislation is the exclusive prerogative of the legislature except where it has expressly conferred that power upon a city, and since no such power had been delegated to the city, the ordinance was invalid. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
Tables of Similar Character.
Four exhibits in evidence were illustrated brochures showing such devices to be a coin-operated music recorder popularly known as a “juke box,” a baseball game mounted on a coin-operated mechanical table, a similarly mounted and operated target shooting device called “Texan” and another target device called “Pony Express.” None of these devices sufficiently resembled any of the tables enumerated in this section so as to be reasonably deemed a “table of a similar character.” Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
A “juke box” is far removed from anything in the nature of a bagatelle table. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
Collateral References.
Licensing and regulation of pool and billiard rooms and bowling alleys. 20 A.L.R. 1482; 29 A.L.R. 41; 53 A.L.R. 149; 72 A.L.R. 1339.
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5-2-11.
Billiard, bagatelle, pool, and scippio table and game room license fees.
Every person taking a license pursuant to §
5-2-10
shall pay to the city or town treasurer of the city or town granting the license a sum to be fixed by the city or town council granting the license of not less than ten dollars ($10.00) nor more than two hundred dollars ($200), one half (1/2) of that amount to the use of the town or city and one half (1/2) of that amount to the use of the state.
A city ordinance providing for the licensing of juke boxes and mechanical amusement devices was null and void because licensing legislation is the exclusive prerogative of the legislature except where it has expressly conferred that power upon a city, and since no such power had been delegated to the city the ordinance was invalid. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
Section
5-2-13
and this section do not furnish a city with the necessary enabling authority to impose a license fee on juke boxes and mechanical amusement devices. Additionally, the city cannot prohibit the use of those devices by any minor under the age of eighteen years. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
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NOTES TO DECISIONS
Mechanical Amusement Devices.
A city ordinance providing for the licensing of juke boxes and mechanical amusement devices was null and void because licensing legislation is the exclusive prerogative of the legislature except where it has expressly conferred that power upon a city, and since no such power had been delegated to the city the ordinance was invalid. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
Section
5-2-13
and this section do not furnish a city with the necessary enabling authority to impose a license fee on juke boxes and mechanical amusement devices. Additionally, the city cannot prohibit the use of those devices by any minor under the age of eighteen years. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
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5-2-12.
Penalty for maintenance of unlicensed tables.
Every person who owns, keeps, or uses any billiard table, bagatelle table, pool table, scippio table, or any table of similar character, without first obtaining a license, shall be fined twenty dollars ($20.00) or be imprisoned not exceeding three (3) months for each offense.
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5-2-13.
Permitting use of tables by minors.
No person licensed by virtue of this chapter shall permit any table, the use of which has been permitted under a license granted to him or her, to be used by any minor under the age of eighteen (18) years except as provided in this section; and in case of that use being permitted, the person holding the license then forfeits the license, and is liable to the penalty imposed by §
5-2-12
.
A city or town, by ordinance, may authorize any facility operated by a licensed person in which alcoholic beverages are not served to allow a minor sixteen (16) years of age or older to use any table.
Section
5-2-11
and this section do not furnish a city with the necessary enabling authority to impose a license fee on juke boxes and mechanical amusement devices. Additionally, the city cannot prohibit the use of those devices by any minor under the age of eighteen years. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
A city ordinance providing for the licensing of juke boxes and mechanical amusement devices was null and void because licensing legislation is the exclusive prerogative of the legislature except where it has expressly conferred that power upon a city, and since no such power had been delegated to the city, the ordinance was invalid. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
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NOTES TO DECISIONS
Mechanical Amusement Devices.
Section
5-2-11
and this section do not furnish a city with the necessary enabling authority to impose a license fee on juke boxes and mechanical amusement devices. Additionally, the city cannot prohibit the use of those devices by any minor under the age of eighteen years. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
A city ordinance providing for the licensing of juke boxes and mechanical amusement devices was null and void because licensing legislation is the exclusive prerogative of the legislature except where it has expressly conferred that power upon a city, and since no such power had been delegated to the city, the ordinance was invalid. Newport Amusement Co. v. Maher,
92 R.I. 51
, 166 A.2d 216,
1960 R.I. LEXIS 137
(1960).
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Collateral References.
Billiard rooms, regulations as to minors in. 20 A.L.R. 1487; 29 A.L.R. 41; 53 A.L.R. 149; 72 A.L.R. 1339.
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5-2-14.
Continuation of powers of boards and bureaus of police commissioners.
Whenever the powers conferred in this chapter by law upon city and town councils have been conferred upon boards or bureaus of police commissioners in any city or town, those powers shall continue to be exercised by those boards or bureaus of police commissioners.
Former chapter 3 of this title (P.L. 1984, ch. 226, § 2: P.L. 1992, ch. 391, § 1), consisting of §§
5-3-1
— 5-3-24 and concerning public accountancy, was repealed by P.L. 1995, ch. 159, § 1, effective July 3, 1995. For present similar provisions, see Chapter 3.1 of this title.
A former chapter (P.L. 1906, ch. 1370, §§ 1, 3-11; G.L. 1909, ch. 34, §§ 1, 3-11; G.L. 1923, ch. 211, §§ 1, 3-11; P.L. 1930, ch. 1522, § 1; G.L. 1938; ch. 148, §§ 1, 3-11; P.L. 1939, ch. 660, §§ 120, 129, 131; P.L. 1940, ch. 821, § 4; G.L. 1956, §§
5-3-1
—
5-3-1
8; P.L. 1960, ch. 76, § 2; P.L. 1962, ch. 228, § 1; P.L. 1963, ch. 28, § 1; P.L. 1970, ch. 272, § 1), consisting of former §§ 5-3-1 — 5-3-18 and concerning certified public accountants, was repealed by P.L. 1984, ch. 226, § 1, effective July 1, 1984. Section 2 of P.L. 1984, ch. 226 enacted a new chapter.
Chapter 3.1 Public Accountancy
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5-3.1-1.
Short title.
This chapter may be cited as the “Accountancy Act.”
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
Cross References.
Professional service corporations, §
7-5.1-1
et seq.
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5-3.1-2.
Policy and purpose.
It is the policy of this state and the purpose of this chapter:
To promote the dependability of information that is used for guidance in financial transactions or for accounting for or assessing the financial status or performance of commercial, noncommercial, and governmental enterprises;
To protect the public interest by requiring that persons professing special competence in accountancy or offering assurance as to the reliability or fairness of presentation of that information demonstrate their qualification to do so, and that persons who have not demonstrated and maintained those qualifications, including, but not limited to, certificate holders not in public practice, not be permitted to hold themselves out as having that special competence or to offer that assurance;
To regulate the professional conduct of persons licensed as having special competence in accountancy, in all aspects of the practice of public accountancy;
To establish a public authority competent to prescribe and assess the qualifications of and to regulate the professional conduct of practitioners of public accountancy; and
To prohibit the use of titles relating to the practice of public accountancy that are likely to mislead the public as to the status or competence of the persons using those titles.
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History of Section.
P.L. 1995, ch. 159, § 2.
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5-3.1-3.
Definitions.
As used in this chapter, unless the context requires otherwise, the following terms are construed as follows:
“Attest” means providing the following services:
Any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS);
Any review of a financial statement to be performed in accordance with the Statement on Standards for Accounting and Review Services (SSARS);
Any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE);
Any engagement to be performed in accordance with the standards of the public company accounting oversight board;
Any examination, review, or agreed-upon procedures engagement to be performed in accordance with the SSAE, other than an examination described in subsection (1)(iii); and
The statements on standards specified in this definition shall be adopted by reference by the board pursuant to rulemaking and shall be those developed for general application by recognized national accountancy organizations, such as the American Institute of Certified Public Accountants, and the Public Company Accounting Oversight Board.
“Authority” means an authority to practice as a public accountant in this state granted by the public accountants advisory commission under former § 5-3-6 (P.L. 1962, chapter 228, Section 1, as amended by P.L. 1970, chapter 272, Section 1).
“Board” means the board of accountancy, a public authority created by §
5-3.1-4
.
“Certificate” means a certificate as certified public accountant issued under this chapter or corresponding provisions of prior law, or a corresponding certificate as certified public accountant issued after examination under the law of any other state.
“Certified public accountant” or “CPA” means a person holding a certificate issued under this chapter or corresponding provisions of prior law or under the accountancy act or similar law of any other state.
“Compilation” means providing a service to be performed in accordance with the Statement on Standards for Accounting and Review Services (SSARS), as adopted by the American Institute of Certified Public Accountants, that is presenting in the form of financial statements, information that is the representation of management without undertaking to express any assurance on the statements.
“Entity” includes a general partnership, limited-liability company, limited-liability partnership, corporation, sole proprietor, trust, and joint venture.
“Good moral character” for purposes of this section, means lack of a history of dishonest or felonious acts.
“Licensee” means the holder of a certificate, authority, or permit issued under this chapter or under the prior laws of this state.
“Majority” refers to more than fifty percent (50%) ownership in terms of financial interests and voting rights.
“Peer review” means a study, appraisal, or review of one or more aspects of the professional work of a practice unit engaged in the practice of public accountancy in this state, by a licensee or licensees who are not affiliated with the practice unit being reviewed.
“Permit” means a permit to practice public accountancy issued under §
5-3.1-7
, §
5-3.1-8
, or §
5-3.1-9
, or under corresponding provisions of prior law, or under corresponding provisions of the law of any other state.
“Practice of (or practicing) public accounting or accountancy” means the performance of, or the offering to perform, in an independent posture, for a client or potential client, one or more kinds of services involving the use of accounting or auditing skills, in connection with the issuance of reports as defined in subsection (17).
“Practice unit” means a sole proprietorship, corporation, partnership, or other entity engaged in the practice of public accounting in this state. For the purpose of this chapter, the office of the auditor general is considered a practice unit.
“Principal residence” means the state in which a person has the right to register to vote for, or the right to vote in, general elections and in which he or she qualifies to file a resident state income tax return.
“Public accountant” or “PA” means a person holding an authority as a public accountant issued under the prior laws of this state.
“Report” means an opinion, report, or other form of language that states or implies assurance as to the reliability of the attested information or compiled financial statements and that also includes, or is accompanied by, a statement or implication that the person or practice unit issuing the financial statements has special knowledge or competence in accounting or auditing. A statement or implication of special knowledge or competence may arise from use by the issuer of the report of names or titles indicating that the issuer is an accountant or auditor, or from the language of the report itself. The term “report” includes any form of language that disclaims an opinion when that language is conventionally understood to imply any positive assurance as to the reliability of the attested information or compiled financial statements referred to and/or any special competence on the part of the person or practice unit issuing that language; and it also includes any other form of language that is conventionally understood to imply that assurance and/or special knowledge or competence.
“State” means the states of the United States, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. The term “this state” means the state of Rhode Island.
“Substantial equivalency” means a determination by the board of accountancy that the education, examination, and experience requirements contained in the statutes and administrative rules of another state or jurisdiction are comparable to or exceed the education, examination, and experience requirements included in this chapter or that an individual CPA’s education, examination, and experience qualifications are comparable to or exceed the education, examination, and experience requirements contained in this chapter. In ascertaining substantial equivalency as used in this chapter, the board shall take into account the qualifications without regard to the sequence in which experience, education, or examination requirements were attained.
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5-3.1-4.
Board of accountancy.
There is created a board of accountancy in and for the state of Rhode Island, to be known as the Rhode Island board of accountancy. The board shall consist of five (5) members. All members shall be appointed by the governor. Membership of the board shall consist of three (3) members who hold certificates and valid permits to practice as certified public accountants in this state and who are in public practice as certified public accountants in this state, and one member who holds an authority and a valid permit to practice as a public accountant in this state unless the governor shall not be able to find a qualified appointee within the class of public accountants at which time the governor shall appoint a certified public accountant. All four (4) of those members shall have at least ten (10) years’ experience in a full-time practice of public accountancy. The fifth member shall be from the public sector and shall have professional or practical experience in the use of accounting services and financial statements as to be qualified to evaluate whether the qualifications, activities, and professional practice of those persons and firms regulated under this chapter conform with the standards established to protect the public interest. The board member from the public sector shall be designated as the public’s member to the board for the term of service appointed. Except as provided, the term of the members of the board shall be five (5) years. No member of the board shall be associated in the practice of accountancy, either individually or as a member of a firm, with any other member of the board. The members of the Rhode Island board of accountancy appointed and serving under prior law on July 1, 1995, shall serve out the terms for which they were originally appointed as members of the board created by this section. Vacancies occurring during any term shall be filled by appointment by the governor for the unexpired term. Upon the expiration of his or her term of office, a member shall continue to serve until his or her successor has been appointed and has assumed office. The governor shall remove from the board any member whose certificate, authority, or permit has been revoked, suspended, or not renewed. No person who has served two (2) consecutive, complete terms is eligible for reappointment. Serving the remainder of an unexpired term upon appointment by the governor to fill a vacancy on the board shall not be considered as serving a complete term.
The board shall elect annually from among its members a chairperson and any other officers that it deems appropriate. The board shall meet at any times and places that are fixed by the board and in any event shall meet no less than four (4) times each year. Three (3) members of the board shall constitute a quorum for the transaction of business. The board shall have a seal which shall be judicially noticed. The board shall retain or arrange for the retention of all applications and documents under oath that are filed with the board, and shall maintain a registry of the names and addresses of all licensees. The board shall keep records of its proceedings, and in any proceeding in court, civil or criminal, arising out of, or founded upon, any provision of this chapter, copies of the records certified as correct under the seal of the board are admissible in evidence.
Each member of the board shall be reimbursed for actual and necessary expenses incurred in the discharge of those duties, but shall not receive compensation for their services on the board.
All fees and monies derived under the provisions of this chapter shall be paid to, and received by, the general treasurer of the state of Rhode Island, who shall keep the monies in a restricted receipt account. All monies in the restricted receipt account shall be used to reimburse the board for expenses incurred in the administration and enforcement of this chapter. The board treasurer is authorized and directed to draw orders upon the general treasurer for payment from the restricted receipt account upon receipt by the board treasurer of vouchers authenticated by the chairperson, vice chairperson, or secretary of the board.
The board shall maintain on its website an annual report of its activities with the governor and the general assembly of this state. The report shall include, but not be limited to, a statement of all receipts and disbursements and a listing of all current licensees.
The board shall prescribe any rules and regulations not inconsistent with the provisions of this chapter that it deems consistent with, or required by, the public welfare and policy established in §
5-3.1-2
. Those rules and regulations may include:
Rules and regulations of procedure for governing the conduct of matters before the board;
Rules and regulations of professional conduct for establishing and maintaining high standards of competence and integrity in the profession of public accounting;
Rules and regulations governing educational and experience requirements for the issuance of certificates;
Rules and regulations establishing requirements for continuing education to promote the professional competence of holders of permits, which the board may require those holders to meet as a condition of their continuing in the practice of public accounting;
Rules and regulations governing practice units engaged in the practice of public accounting, including, but not limited to, rules and regulations concerning the style, name, title, and affiliation with any other organization, and establishing reasonable standards as to professional liability insurance;
Rules and regulations for reviewing and monitoring professional performance and conducting peer reviews;
Any other rules and regulations that the board deems necessary or appropriate in exercising its functions under this chapter.
The promulgation of any rule, regulation, or amendment to it under subsection (f) of this section, or under any other provision of this chapter, shall be in accordance with §
42-35-3
.
The board may employ any personnel and arrange for any assistance, legal or otherwise, that it requires for the performance of its duties. It may also establish one or more advisory committees as it deems necessary in the performance of its duties. The authority and term of that advisory committee may be permanent or temporary in nature as determined by the board.
Sue and be sued in its official name as an agency of this state;
Investigate all complaints and charges of unprofessional conduct, including, but not limited to, conduct specified under §
5-3.1-12
, against any licensee or any applicant for a certificate or permit, and to hold hearings, in accordance with the provisions of §
5-3.1-14
, to determine whether those complaints and charges are substantiated;
Appoint one or more members of the board, legal counsel, and/or an independent investigator to act on behalf of the board in investigating the conduct of any licensee, or of any applicant for a certificate or permit, or, in the alternative, to appoint a probable-cause committee to investigate that conduct on its behalf, the committee to be comprised of licensees in good standing, as the board determines; and
Issue subpoenas, administer oaths, and summon and examine witnesses in connection with any investigation conducted under authority of this chapter. If a subpoena is disobeyed, the board may invoke the aid of any court of competent jurisdiction in this state to require the attendance and testimony of witnesses and the production of documentary evidence.
In addition to its rulemaking authority, the board has the power to take all action that is necessary and proper to effectuate the purposes of this chapter, including the power to:
The board and its members and agents are immune from personal liability for actions taken in good faith in the discharge of the board’s responsibilities, and the state of Rhode Island shall indemnify the board and those members and agents for, and hold them harmless from, any and all costs, damages, and reasonable attorney’s fees arising from, or related in any way, to claims or actions against them as to matters to which the immunity applies.
The board shall adopt rules and regulations to implement substantial equivalency as set forth in §
5-3.1-7(g)
.
Section
42-35-3
, referred to in this section, was amended by P.L. 2016, ch. 203, § 2, and P.L. 2016, ch. 206, § 2, effective June 29, 2016. Comparable provisions are now found in chapter 35 of title 42.
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5-3.1-5.
Certified public accountants.
Upon application for a certificate and payment of the required fee, the board shall issue a certificate to any person who:
Is of good moral character;
Has a principal residence in Rhode Island as defined in §
5-3.1-3
or a primary place of employment in Rhode Island;
Has received a baccalaureate degree from a college or university acceptable to the board, the total educational program of which includes an accounting concentration or its equivalent and courses in any related subjects that the board determines to be appropriate; provided, the education requirement for a certificate shall be at least one hundred fifty (150) semester hours of college education, including a baccalaureate or higher degree conferred by a college or university acceptable to the board, the total educational program of which includes an accounting concentration or equivalent as determined by board rule to be appropriate; provided, that a candidate who has not met the one-hundred-fifty-hour (150) education requirement may sit for an examination if the candidate has, at the time of the examination, completed not less than one hundred twenty (120) semester hours of education, provided that such candidate who successfully passes the examination will not be eligible to receive a certificate until the applicant completes the one-hundred-fifty-hour (150) education requirement and the experience requirement;
Has passed examinations in accounting and auditing and any related subjects that the board deems appropriate and specifies by rule;
Has one year of experience in providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills, all of which were verified by a licensee, meeting requirements prescribed by the board by rule. This experience would be acceptable if it was gained through employment in government, industry, academia, or public practice. After December 31, 1999, the person must also have completed one hundred fifty (150) hours or received a master’s or doctorate degree in accounting, business administration, or other related curriculum from a college or university recognized by the board; and have satisfactorily completed any number of semester hours in accounting, auditing, and other business courses that are prescribed by board rules and regulations; and
If an out-of-state individual:
Has passed all parts of the uniform certified public accountant examination in another jurisdiction, but has not received a certificate or similar certification in that jurisdiction;
Has established a principal residence in Rhode Island or a primary place of employment in Rhode Island preparatory to seeking a certificate from this state;
Has complied with the longer of:
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The experience requirement in the jurisdiction in which the uniform examination was taken; or
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The experience requirement in the jurisdiction in which the uniform examination was taken; or
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The Rhode Island experience requirement;
Has complied with the educational requirements under subsection (a)(3); and
Has satisfactorily complied with any other requirements that the board by rule or regulation reasonably determines to be appropriate.
The board, in its discretion, may accept the educational credits of any person who is a candidate for a certificate if it is satisfied, by appropriate means of evaluation, that the credits are an acceptable substitute for the credit requirements of subsection (a)(3). The board, in its discretion, may waive the residency or primary place of employment requirements relating to the issuance of a certificate as stated in subsections (a)(2) and (a)(6).
The examinations described in subsection (a)(4) are held by the board and shall take place as often as the board determines to be desirable, but in any event not less frequently than once each year. The board shall prescribe by rule the procedures to be followed in applying for and conducting the examinations and the methods to be used in grading the examinations and determining a passing grade. The board may make use of any or all parts of the uniform certified public accountant examination and advisory grading service provided by the American Institute of Certified Public Accountants, and may contract with third parties to perform any administrative services with respect to the examinations that the board deems appropriate to assist it in performing its duties under this section.
The board may, by rule or regulation, provide for the granting of credit to a candidate for the satisfactory completion by the candidate of an examination, in any one or more of the subjects referred to in subsection (a)(4), that is given by the licensing authority in any other state. Any rules and regulations shall include the requirement that any examination approved as a basis for the granting of credit is, in the judgment of the board at the time of the granting of the credit, at least as thorough as the most recent examination given by the board in the subject or subjects tested. The board may also, by rule or regulation, prescribe terms and conditions under which a candidate who passes the examination in one or more of the subjects referred to in subsection (a)(4) may be reexamined in the remaining subjects, with credit given for the subjects previously passed. It also may provide by rule or regulation for a reasonable waiting period for a candidate’s reexamination in a subject previously failed. Subject to the preceding and to any other rules and regulations that the board may adopt governing reexaminations, a candidate is entitled to any number of reexaminations. Except as the board may provide by a rule or regulation in order to prevent what it determines to be undue hardship to candidates, a candidate granted credit for satisfactory examination in any one or more of the subjects referred to in subsection (a)(4) shall have met the educational requirement of subsection (a)(3) or (a)(5) of this section in effect on the date of the examination by which the candidate successfully completes the examination under subsection (a)(4).
The board shall charge each candidate for a certificate a fee for the initial examination under subsection (a), for reexamination under subsection (d) for each subject in which the candidate is reexamined, and for evaluation of a candidate’s educational qualifications under subsection (b). The applicable fee shall be paid by the candidate at the time of application for the examination, reexamination, or evaluation. Fees for examination, reexamination, and evaluation of educational qualifications shall be determined by the board and prescribed in the rules and regulations issued by the board. The liability of the board to a candidate taking an examination or reexamination is limited to the amount of the fee received for the examination.
Persons who on July 1, 1995, hold a certificate issued under the laws of this state prior to that date are not required to obtain an additional certificate under this chapter, but are subject to all the provisions of this chapter; the certificate previously issued is, for all purposes, considered a certificate issued under this chapter and subject to the provisions of this chapter. Reinstatement power is vested in the board as to those certificates suspended or revoked prior to July 1, 1995, and the holder of those certificates may have them reissued upon application for reissuance in accordance with §
5-3.1-15
. Persons holding certificates on July 1, 1995, who are estopped from obtaining a permit under government employment restrictions may apply for a permit under §
5-3.1-7
within one year following termination of that employment, and upon obtaining the permit may engage in the practice of public accounting in this state as a certified public accountant subject to the provisions of this chapter.
The board shall, upon application for a certificate and payment of a fee to be determined by the board and promulgated by rule or regulation, issue a certificate to a holder of a certificate issued by another state, provided that:
The applicant meets all current requirements in this state at the time application is made; and
At the time of the issuance of the applicant’s certificate in the other state, the applicant met all requirements then applicable in this state unless reciprocity is allowed under the substantial equivalency standard in §
5-3.1-7
.
If the holder of a certificate issued by another state meets all current requirements in this state except the educational or experience requirements of this state as prescribed in this section, or passed the examination under different credit provisions then applicable in this state, the board shall issue a certificate to the applicant upon application for the certificate and upon payment of the required fee, provided that:
The applicant has four (4) years of experience of the type described in subsection (a)(5) or meets comparable requirements prescribed by the board by rule within the ten (10) years immediately prior to the application; or
The applicant has five (5) years of experience in the practice of public accountancy over a longer or earlier period and has completed fifteen (15) current semester hours of accounting, auditing, and any other related subject that the board specifies by rule, at an accredited institution, and has one year of current experience in the practice of public accountancy.
An applicant for issuance of a certificate under this section shall list in the application all other states in which the applicant has applied for or holds a certificate. Each applicant for or holder of a certificate issued under this section shall, within thirty (30) days of the occurrence of that event, notify the board, in writing, of the issuance, denial, revocation, or suspension of a certificate by any other state, or of the commencement of a disciplinary or enforcement action against the applicant or holder by any other state.
The board may refuse to grant a certificate on the grounds of failure to satisfy the good moral character requirement only if there is a substantial connection between the lack of good moral character of the applicant and the professional responsibilities of a licensee and if the finding by the board of lack of good moral character is supported by clear and convincing evidence. When an applicant is found to be unqualified for a certificate because of lack of good moral character, the board shall furnish the applicant a statement containing the findings of the board, a complete record of the evidence upon which the determination was based, and a notice of the applicant’s right of appeal.
Constitutionality of discrimination against aliens in legislation relating to licenses. 39 A.L.R. 346.
Construction and application of statutory provisions respecting persons who may prepare tax returns for others. 10 A.L.R.2d 1443.
License, failure of accountant to procure, as affecting validity or enforceability of contracts. 30 A.L.R. 851; 42 A.L.R. 1226; 118 A.L.R. 646.
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5-3.1-6.
Public accountants.
Persons who on July 1, 1995, hold an authority as a public accountant and a permit issued under the prior laws of this state may continue to engage in the practice of public accounting in this state as public accountants and may subsequently continue to use the designation “PA”; provided, that those persons continue to hold a permit issued under the laws of this state and otherwise remain in compliance with this chapter.
Persons who on July 1, 1995, hold an authority as a public accountant but do not hold a permit issued under the prior laws of this state shall no longer engage in the practice of public accounting as public accountants in this state and shall no longer use the term “public accountant” or the designation “PA”; provided, that the board may reinstate the holder of an authority whose permit has been suspended, revoked, or not renewed prior to July 1, 1995, upon application for reinstatement under §
5-3.1-15
. An application for reinstatement under §
5-3.1-15
shall include evidence of the applicant’s authority to practice as a public accountant in this state prior to July 1, 1995, and any other evidence that the board requires. Upon reinstatement, the applicant may engage in the practice of public accounting in this state as a public accountant, may hold himself or herself out to the public as a public accountant, and may subsequently use the designation “PA”; provided, that the applicant continues to hold a permit issued under the laws of this state and remains in compliance with this chapter. Notwithstanding these provisions, persons holding an authority on July 1, 1995, who are estopped from obtaining a permit under government employment restrictions, may apply for a permit under §
5-3.1-7
within one year following termination of that employment, and upon obtaining that permit may engage in the practice of public accounting in this state as a public accountant subject to the provisions of this chapter.
After July 1, 1995, no person, except a person qualified under subsection (a) or (b) of this section, is entitled to an authority or to be issued a permit to practice, or to be known as or hold himself or herself out to the public as a public accountant, or is entitled to exercise the rights of a public accountant under this chapter.
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History of Section.
P.L. 1995, ch. 159, § 2.
Collateral References.
Constitutionality or discrimination against aliens in legislation relating to licenses. 39 A.L.R. 346.
Validity, construction, and application of statute or regulation restricting use of terms such as “accountant,” “public accountant,” or “certified public accountant.” 4 A.L.R.4th 1201.
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5-3.1-7.
Permits for public accountants and certified public accountants.
Annual permits to engage in the practice of public accounting in this state shall be issued by the board, upon application for the permit and payment of the required fee, to certified public accountants qualified under §
5-3.1-5
or eligible under the substantial equivalency standard set out in subsection (g), and to public accountants qualified under §
5-3.1-6
. Effective January 1, 2009, all permits issued by the board shall be valid for a period of three (3) years and shall expire upon the last day of June of the year in which the permit is scheduled to expire. To transition existing licensees to a three-year (3) licensing cycle, the board shall have the authority and discretion in 2008 to issue permits under this section that are valid for one, two (2), or three (3) years. All such permits issued during 2008 shall expire upon the last day of June of the year in which the permit is scheduled to expire. The board’s authority to issue permits valid for one or two (2) years shall cease as of December 31, 2008.
A certified public accountant who holds a permit issued by another state and who desires to practice in this state shall apply for a permit in this state if that person does not qualify for reciprocity under the substantial equivalency standard set out in subsection (g). Upon the date of filing the completed application with the board, the applicant is deemed qualified to practice, and may practice, public accounting in this state pending board review of the application; provided, that the applicant meets all other applicable requirements under this chapter. Submission of the application constitutes the appointment of the secretary of state as an agent for the applicant for service of process in any action or proceeding arising out of any transaction or operation connected with or incidental to the practice of public accounting in this state by the applicant.
Applications for renewal of a permit under this section shall be submitted to the board by February 15 of the year in which the permit is scheduled to expire and shall be accompanied by evidence that the applicant has satisfied the continuing professional education requirements promulgated by board regulation. That evidence shall be in a form that the board requires. Failure to furnish that evidence constitutes grounds for refusal to renew the permit unless the board in its discretion determines that the failure was due to reasonable cause or excusable neglect.
Applications for renewal of a permit under this section shall also identify any practice unit with which the applicant is affiliated. In the event the practice unit fails to comply with §
5-3.1-9
or §
5-3.1-10
, the board may refuse to renew the applicant’s individual permit if the board determines that the applicant was personally and substantially responsible for the failure of the practice unit to meet the requirements of §§
5-3.1-9
and
5-3.1-10
.
All applicants for a permit under this section shall list in the application all other states in which the applicant has applied for or holds a permit to practice. Each applicant for, or holder of, a permit issued under this section, or any individual who has entered the state under the provisions of substantial equivalency, shall, within thirty (30) days of the occurrence of the event, notify the board in writing:
Of the issuance, denial, revocation, or suspension of any certificate, license, degree, or permit by any other state; or
Of the commencement of any disciplinary or enforcement action against the applicant, holder, or individual by any other state.
Fees for the issuance and renewal of permits under this section shall be established from time to time by the board. In no case shall the three-year (3) renewal fee be less than three hundred seventy-five dollars ($375). The required fee shall be paid by the applicant at the time the application is filed with the board.
Substantial equivalency.
An individual having a valid certificate or license as a certified public accountant from any state whose licensure requirements are determined to be substantially equivalent with the conditions of this section shall have all the privileges of certificate holders and licensees of this state without the need to obtain a certificate or permit from this state under this section as long as the conditions of this section are met. The individual must have one year or more of experience. This experience shall include providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills all of which was verified by a licensee, meeting requirements prescribed by the board by rule. This experience is acceptable if it was gained through employment in government, industry, academia, or public practice. Notwithstanding any other provision of law, an individual who offers or renders professional services, whether in person, by mail, telephone, or electronic means, under this section shall be granted practice privileges in this state and no notice or other submission shall be provided by any such individual. Such an individual shall be subject to the requirements in subsection (g)(3). If this individual is responsible for supervising attest services and signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the firm, this individual shall meet the experience requirements set out in the professional standards for such services. If this individual is responsible for signing or authorizing another licensee to sign the accountant’s report on the financial statements on behalf of the firm, this individual shall meet the experience requirements set out in the professional standards for such services. The board may use the NASBA National Qualification Appraisal Service to determine which other states have substantial equivalence with this chapter.
An individual who holds a valid certificate or license as a certified public accountant from any state that the NASBA National Qualification Appraisal Service has not verified to be in substantial equivalence with the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act shall be presumed to have qualifications substantially equivalent to this state’s requirements and shall have all the privileges of certificate holders and licenses of this state without the need to obtain a certificate or permit under this section if such individual obtains from the NASBA National Qualification Appraisal Service verification that such individual’s CPA qualifications are substantially equivalent to the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act. Any individual who passed the Uniform CPA Examination and holds a valid license issued by any other state prior to January 1, 2012, may be exempt from the education requirement in §
5-3.1-5(a)(3)
for purposes of this section.
Any individual licensee of another state exercising the privilege afforded under this section and the CPA firm that employs that licensee hereby simultaneously consents, as a condition of the granting of this privilege:
To the personal and subject-matter jurisdiction and disciplinary authority of the board;
To comply with this chapter and the board’s rules;
That, in the event the certificate or license from the state of the individual’s principal place of business is no longer valid, the individual will cease offering or rendering professional services in this state individually and on behalf of a CPA firm; and
To the appointment of the board that issued their license as their agent upon whom process may be served in any action or proceeding by this board against the licensee.
A licensee of this state offering or rendering services or using their CPA title in another state shall be subject to disciplinary action in this state for an act committed in another state for which the licensee would be subject to discipline for an act committed in the other state.
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5-3.1-8.
Permits for accountants licensed by foreign countries.
An annual limited permit to engage in the practice of public accounting in this state may be issued by the board, upon application for the permit and payment of the required fee, to any person who is the holder of a certificate, license, or degree from a foreign country constituting a recognized qualification for the practice of public accounting in that country, provided that: (1) The board determines that the requirements for obtaining the certificate, license, or degree are substantially equivalent to those prescribed under this chapter for obtaining a certificate in this state; (2) The certificate, license, or degree at the time of application is then in full force and effect; and (3) The applicant meets all other requirements under this section. In the event the board determines that the requirements for obtaining the certificate, license, or degree are not substantially equivalent to those prescribed in this chapter for obtaining a certificate in this state, the board may require, as a condition to granting a permit under this section, that the applicant pass the written examinations required of candidates for a certificate under §
5-3.1-5(a)(4)
. Any permit issued under this section shall be issued in the name of the applicant followed by the recognized accounting designation by which he or she is known in the country where licensed, translated into the English language, followed by the name of the country. Annual limited permits to engage in the practice of public accounting qualify the holder to practice public accounting in this state solely as to matters concerning residents, governments, and corporations or other business entities, including the divisions, subsidiaries, or any affiliates of the business entity, of the foreign country in which the holder is licensed to practice public accounting. A person who is issued a permit under this section, when engaging in the practice of public accounting in this state, shall only use the title under which he or she is generally known in his or her own country, translated into the English language and indicating after the title the name of the country from which he or she received his or her certificate, license, or degree.
All annual limited permits issued under this section shall expire on the last day of June of each year and may be renewed for a period of one year in accordance with subsection (c) of this section. Submission of the application for original issuance or renewal of an annual limited permit constitutes the appointment of the secretary of state as an agent for the applicant for service of process in any action or proceeding arising out of any transaction or operation connected with or incidental to the practice of public accounting in this state by the applicant.
Applications for renewal of an annual limited permit are submitted to the board by February 15 of each year and shall be accompanied by evidence of satisfaction of the continuing professional education requirements promulgated by board regulation. The evidence shall be in any form that the board requires. Failure to furnish the evidence constitutes grounds for refusal to renew the permit unless the board in its discretion determines that the failure was due to reasonable cause or excusable neglect. Notwithstanding the preceding, the board, in its discretion, may waive the above continuing education requirements if:
The licensing authority of the foreign country in which the holder of the annual limited permit is licensed has established requirements for continuing education for practitioners of public accounting;
The applicant has filed with the board an affidavit stating that he or she is in compliance with those continuing education requirements at the time of the application for renewal; and
The board determines that the continuing education requirements are substantially equivalent to those promulgated by the board under this chapter.
An application for a permit under this section shall list all other jurisdictions in which the applicant has applied for or holds a certificate, license, or degree to practice public accountancy or a permit to practice. Each applicant for or holder of a permit under this section shall, within thirty (30) days of the occurrence of the event, notify the board in writing:
Of the issuance, denial, revocation, or suspension of the certificate, license, degree, or permit; or
Of the commencement of any disciplinary or enforcement action against the applicant or holder by any jurisdiction.
An applicant under this section shall also list in the application the address of every office established or maintained in this state for the limited practice of public accounting. All of those offices shall be under the direct supervision of an accountant licensed either by this state or by a foreign country who holds an annual limited permit to practice issued under this section, and shall be designated by the name and title of the accountant. If applicable, the title is translated into the English language and followed by the name of the foreign country where the accountant is licensed. All applicants for or holders of a permit under this section shall notify the board, in writing, within thirty (30) days of the occurrence of the event:
Of any change in the number or location of offices within this state required to be listed in the application; and
Of any change in the identities of the persons supervising those offices.
The board shall charge a fee to each person who makes application for original issuance or renewal of a permit under this section. The fee shall be paid in U.S. currency at the time the application is made. Fees charged under this section shall be established by the board.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-3.1-9.
Permits for practice units.
Permits to engage in the practice of public accounting in this state as a practice unit shall be issued by the board, upon application therefore and payment of the required fee, to an entity that demonstrates its qualifications in accordance with this chapter or to certified public accounting firms originally licensed in another state that establish an office in this state. A practice unit must hold a permit issued under this section in order to provide attest and compilation services as defined or to use the title “CPAs” or “CPA firm.” An applicant entity for initial issuance or renewal of a permit to practice under this section shall be required to register each office of the firm within this state with the board and to show that all attest and compilation services as defined in this chapter rendered in this state are under the charge of a person holding a valid certificate issued under this chapter, or the corresponding provision of prior law or some other state.
An entity shall satisfy the following requirements:
For corporations, general partnerships, joint ventures, limited-liability partnerships, and limited-liability companies:
The principal purpose and business of the partnership must be to furnish public accounting services to the public not inconsistent with this chapter and the rules and regulations of the board;
A majority of the ownership of the entity, in terms of financial interests and voting rights of all partners, shareholders, or members, belongs to holders of a certificate who shall hold a certificate and a permit from some state, and such partners, shareholders, or members, whose principal place of business is in this state and who perform professional services in this state, hold a valid permit issued under this chapter or are public accountants registered under §
5-3.1-7
. Although firms may include non-licensee owners, the firm and its ownership and all parties must comply with rules promulgated by the board. For firms of public accountants, a majority of the ownership of the firm, in terms of financial interests and voting rights, must belong to holders of permits under §
5-3.1-7
, and provided, that any such entity, as defined by this subsection, may include non-licensee owners, provided that:
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The entity designates a licensee of this state who is responsible for the proper registration of the firm and identifies that individual to the board;
All non-licensee owners are active individual participants in the entity;
The entity complies with other requirements as the board may impose by rule;
Any individual licensee who is responsible for supervising attest and compilation services and signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the firm, shall meet the experience requirements as set out in professional standards for such services;
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The entity designates a licensee of this state who is responsible for the proper registration of the firm and identifies that individual to the board;
All non-licensee owners are active individual participants in the entity;
The entity complies with other requirements as the board may impose by rule;
Any individual licensee who is responsible for supervising attest and compilation services and signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the firm, shall meet the experience requirements as set out in professional standards for such services;
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Any individual licensee who signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the firm shall meet the experience requirement as set out in professional standards for these services;
At least one partner, shareholder, or member must be a certified public accountant or a public accountant holding a certificate or authority under this chapter and a permit to practice in this state under § 5-3.1-7; and
The address of every office of the entity located in this state must be listed in the application for the permit.
For a sole proprietorship:
The principal purpose and business of the sole proprietorship must be to furnish public accounting services to the public not inconsistent with this chapter and the rules and regulations of the board;
The sole proprietor must be a certified public accountant or a public accountant holding a certificate or authority under this chapter and a permit to practice in this state under § 5-3.1-7;
The address of every office of the sole proprietorship located in this state must be listed in the application for the permit;
Any individual licensee who is responsible for supervising attest and compilation services and signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the sole proprietor shall meet the experience requirements as set out in professional standards for these services; and
Any individual licensee who signs or authorizes another licensee to sign the accountant’s report on the financial statements on behalf of the firm shall meet the experience requirement as set out in professional standards for these services.
Application for a permit under this section must be made upon the affidavit of the partner, shareholder, member, or sole proprietor who holds a permit to practice in this state under §
5-3.1-7
as a certified public accountant or a public accountant. All applications for a permit under this section must include, in addition to any other information required by this chapter or by rule or regulation of the board to be stated in the application, a list of all other states in which the entity has applied for or holds a permit. Upon receipt of the application, the board shall determine whether the entity is eligible for a permit. In the event the board determines the entity is ineligible for a permit under this section, that determination shall be stated in writing and delivered to the applicant at the address that is stated in the application.
All applicants for, or holders of, a permit under this section shall notify the board in writing within thirty (30) days of the occurrence of the event:
Of any change in the identities of the partners, officers, directors, or shareholders who are personally engaged in this state in the practice of public accounting;
Of any change in the number or location of offices within this state required to be listed in the application pursuant to this section;
Of any change in the identities of the persons supervising the offices;
Of any issuance, denial, revocation, or suspension of a permit by any other state. The board may prescribe fees that are to be paid by the applicants or holders upon the notification; and
Of a reduction below a majority of the ownership in the entity in terms of financial interests and voting rights.
All permits issued by the board under this section subsequent to January 1, 2009, shall be valid for a period of three (3) years and shall expire on the last day of June of the year in which the permit is scheduled to expire unless the permit is renewed in accordance with the provisions of this section. To transition existing licensees to a three-year (3) licensing cycle, the board shall have the authority and discretion in 2008 to issue permits under this section that are valid for one, two (2), or three (3) years. All permits issued during 2008 shall expire upon the last day of June of the year in which the permit is scheduled to expire. The board’s authority to issue permits valid for one or two (2) years shall cease as of December 31, 2008.Effective January 1, 2009, permits issued pursuant to this section may be renewed for a period of three (3) years, and the renewed permit shall expire on the last day of June of the year in which the renewed permit is scheduled to expire, unless the renewed permit is again renewed by its holder. All applications for renewal of permits under this section shall be submitted to the board by February 15 of the year in which a permit or renewed permit is scheduled to expire. All applicants for permit renewal shall satisfy the peer-review requirements prescribed in §
5-3.1-10
.
Fees to be paid upon application for initial issuance or renewal of a permit under this section shall be established, from time to time, by the board. Fees shall be paid at the time the application is filed with the board.
An annual permit to engage in the practice of public accounting in this state shall be issued by the board, upon application for it and payment of the required fee, to the office of the auditor general, provided the office is in compliance with §
5-3.1-10
.
An entity that falls out of compliance with the provisions of this section due to changes in firm ownership or personnel, after receiving or renewing a permit, shall take corrective action to bring the firm into compliance as quickly as possible. The board may grant a reasonable period of time for a firm to take the corrective action. Failure to bring the firm into compliance within a reasonable period as defined by the board will result in the suspension or revocation of the permit.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-3.1-10.
Peer reviews.
The board shall require, as a condition to the renewal of permits for practice units under §
5-3.1-9
, that applicants undergo peer reviews conducted no more frequently than once every three (3) years in any manner and with any satisfactory result that the board specifies. The review shall include verification that the individuals in the firm who are responsible for supervising attest and compilation services and signing or authorizing someone to sign the accountant’s report on the financial statements on behalf of the firm meet competency requirements set out in the professional standards for such services. Any requirements established by the board regarding peer reviews shall:
Be promulgated reasonably in advance of the time when it must first be met; and
Provide for compliance by an applicant upon the showing that it has undergone a satisfactory peer review performed for other purposes, such as those performed by the American Institute of Certified Public Accountants in connection with its peer-review programs, which was substantially equivalent to the review required under this subsection, and that this review was completed within the three (3) years immediately preceding the renewal period.
The proceedings, records, and work papers of a peer-review committee appointed by the board for the purpose of conducting peer reviews under this section shall be privileged and shall not be subject to discovery, subpoena, or other means of legal process or introduction into evidence in any civil action, arbitration, administrative proceeding, or state accountancy board proceeding. No member of the peer-review committee or other person involved in the peer-review process shall be permitted or required to testify in the civil action, arbitration, administrative proceeding, or state accountancy board proceeding as to any matters produced, presented, disclosed, or discussed during or in connection with the peer-review process, or as to any findings, recommendations, evaluations, opinions, or other actions of the committees or any members of the committees. Information, documents, or records that are publicly available shall not be construed as immune from discovery or use in civil actions, arbitration proceedings, administrative proceedings, or state accountancy board proceedings merely because they were presented or considered in connection with the peer-review process. The privilege created by this statute also does not apply to materials prepared in connection with a particular engagement merely because they are subsequently presented or considered as part of the peer-review process; nor does it apply to disputes between review committees and practice units subject to a peer review arising from the performance of the review. The privilege similarly does not apply, notwithstanding any provision in this section to the contrary, to the board or its members, who, so long as they are acting in their official capacities, have access to any and all records, reports, work papers, and other documents and materials that may at any time have been in the possession of or prepared by a peer-review committee during the performance of its duties.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-3.1-11.
Hearing on denial by board.
Any person or practice unit aggrieved by a decision of the board not to: (1) issue a certificate under §
5-3.1-5
, (2) issue a permit to practice under §
5-3.1-7
, §
5-3.1-8
, or §
5-3.1-9
, or (3) renew any permit, as the case may be, may request a hearing before the board on the denial. The request shall be in the form of a written petition, containing any information that the board by rule or regulation requires, and shall be submitted to the board within ten (10) days of the board’s written decision denying the certificate, permit, or renewal.
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History of Section.
P.L. 1995, ch. 159, § 2.
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5-3.1-12.
Revocation or suspension of certificate, authority, or permit.
After notice and a hearing as provided in §
5-3.1-14
, the board may:
Suspend or revoke any certificate issued under §
5-3.1-5
, or any predecessor provision, and any authority as a public accountant issued under the prior laws of this state;
Revoke or suspend any permit issued under §
5-3.1-7
, §
5-3.1-8
, §
5-3.1-9
, or their predecessor provisions; and
Reprimand or censure in writing; limit the scope of practice; impose an administrative fine upon, not to exceed one thousand dollars ($1,000); or place on probation, all with or without terms, conditions, or limitations, a licensee, for any of the causes specified in subsection (b).
The board may take action specified in subsection (a) for any one or more of the following causes:
Fraud or deceit in obtaining a certificate or permit under this chapter;
Dishonesty, fraud, or gross negligence in the practice of public accounting or in the filing, or failing to file, the licensee’s own income tax returns;
Violation of any of the provisions of this chapter;
Violation of any rules and regulations, including, but not limited to, any rules of professional conduct promulgated by the board under the authority granted by this chapter;
Conviction of, or pleading guilty or nolo contendere to, a crime or an act constituting a crime of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, misappropriation of funds, tax evasion, or any other similar offense, in a court of competent jurisdiction of this or any other state or in federal court;
Cancellation, revocation, or suspension of, or refusal to renew, the licensee’s certificate or permit from another state by the other state for any cause other than failure to pay a fee or to meet the requirements of continuing education in that other state;
Suspension or revocation of the right to practice public accounting before any state or federal agency;
As to accountants licensed by foreign countries, cancellation, revocation, suspension, or refusal to renew the person’s certificate, license, or degree evidencing his or her qualification to practice public accounting by the foreign country issuing the certificate, license, or degree, the certificate, license, or degree having qualified the accountant for issuance of an annual limited permit to practice under §
5-3.1-8
;
Failure to furnish the board, or any persons acting on behalf of the board, any information that is legally requested by the board;
Any conduct reflecting adversely upon the licensee’s fitness to engage in the practice of public accountancy; and
Any other conduct discreditable to the public accounting profession.
P.L. 2021, ch. 400, § 1, and P.L. 2021, ch. 401, § 1 enacted identical amendments to this section.
Collateral References.
Accountant’s malpractice liability to client. 92 A.L.R.3d 396.
Bias of members of license revocation board. 97 A.L.R.2d 1210.
Disciplinary action against attorney or accountant for misconduct related to preparation of tax returns for others. 81 A.L.R.3d 1140.
Liability of independent accountant to investors or shareholders. 48 A.L.R.5th 389.
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5-3.1-13.
Revocation or suspension of practice unit permit.
After notice and a hearing as provided in §
5-3.1-14
, the board may revoke or suspend the permit of any practice unit issued under §
5-3.1-9
if at any time the practice unit fails to meet all the qualifications prescribed under §
5-3.1-9
. After notice and a hearing as provided in §
5-3.1-14
, the board may revoke or suspend the permit of a practice unit issued under § 5-3.1-9, and may censure in writing; limit the scope of practice; impose an administrative fine upon, not to exceed one thousand dollars ($1,000); or place on probation, all with or without terms, conditions, or limitations, the holder of the permit, for any cause enumerated in §
5-3.1-12
and for any of the following additional causes:
With respect to any type of partnership and corporate practice units, the revocation or suspension of the certificate or authority of, or the revocation, suspension, or refusal by the board to renew the permit of, any partner, shareholder, or member of the partnership or corporate practice units; and
Cancellation, revocation, suspension, or refusal to renew the permit of the practice unit, or of any partner, shareholder, or member or of the sole proprietor, to practice public accounting in any other state by that state for any cause other than failure to pay a fee or to meet the requirements of continuing education in that other state.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
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5-3.1-14.
Initiation of proceedings — Hearings before board — Appeals — Notice to other states.
The board may initiate proceedings under this chapter against a licensee either on its own motion, on the complaint of any person, upon the finding of probable cause by a probable-cause committee appointed by the board pursuant to §
5-3.1-4
, or upon receiving notification from another state board of accountancy of its decision to:
Revoke, suspend, or refuse to renew the practice privileges granted in that state to the licensee; or
Censure in writing, limit the scope of practice, impose an administrative fine upon, or place on probation the licensee.
A written notice stating the nature of the charge or charges against the licensee and the time and place of the hearing before the board on the charges shall be served on the licensee not less than twenty (20) days prior to the date of the hearing either personally or by mailing a copy of the notice by certified mail, return receipt requested, to the address of the licensee last known to the board.
If, after being served with the notice of hearing as provided for in this section, the licensee fails to appear at the hearing and to defend against the stated charges, the board may proceed to hear evidence against the licensee and may enter an order that is justified by the evidence. That order is final unless the licensee petitions for a review of it as provided in this chapter; provided, that within thirty (30) days from the date of any order, upon a showing of good cause for failing to appear and defend, the board may reopen the proceedings and may permit the licensee to submit evidence in his, her, or its behalf.
At any hearing under this section, the licensee may:
Appear in person or be represented by counsel;
Produce evidence and witnesses on his, her, or its behalf;
Cross-examine witnesses; and
Examine any evidence that is produced.
A partnership may be represented before the board by counsel or by any partner. A corporation may be represented before the board by counsel or by any shareholder or member of the corporation. A sole proprietorship may be represented before the board by counsel or by the sole proprietor. The licensee is entitled, on written application to the board, to the issuance of subpoenas to compel the attendance of witnesses on the licensee’s behalf.
The board or any member of the board may issue subpoenas to compel the attendance of witnesses and the production of documents, and may administer oaths, take testimony, hear proofs, and receive exhibits in evidence in connection with or upon a hearing under this chapter. In case of disobedience to a subpoena, the board may petition the superior court to require the attendance and testimony of witnesses and the production of documentary evidence.
The board shall not be bound by strict rules of procedure or by the laws of evidence in the conduct of its proceedings, but any determination of the board shall be based upon sufficient legal evidence to sustain the determination.
A stenographic record of all hearings under this section shall be kept and a transcript filed with the board.
At all hearings, the attorney general of this state, or any other legal counsel that is employed, shall appear and represent the board.
The decision of the board shall be made by vote in accordance with rules and regulations established under §
5-3.1-4
.
Any appeal from the decision of the board, by a person or persons adversely affected by the decision, shall be governed by §
42-35-15
.
On rendering a decision to: (1) Revoke or suspend a certificate issued under the laws of this state; (2) Revoke or suspend an authority as a public accountant issued under the prior laws of this state; (3) Revoke, suspend, or refuse to renew a permit issued under the laws of this state; or (4) Censure in writing, limit the scope of practice of, impose an administrative fine upon, or place on probation a licensee, the board shall examine its records to determine whether the licensee holds a certificate or a permit to practice in any other state. If the board determines that the licensee in fact holds a certificate or permit, the board shall immediately notify the board of accountancy of the other state by mail of its decision under this section, and shall include in the notice an indication as to whether or not the licensee has appealed that decision.
The board may, in its discretion, order any licensee against whom proceedings have been initiated under §
5-3.1-12
or §
5-3.1-13
to reimburse the board for any fees, expenses, and costs incurred by the board in connection with those proceedings, including attorney’s fees. Those fees shall be paid within thirty (30) days from the date they are assessed and may be reviewed in accordance with §
42-35-15
.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
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5-3.1-15.
Reinstatement.
Upon application in writing or after hearing pursuant to notice, the board may:
Reissue a certificate to a certified public accountant whose certificate has been revoked or suspended;
Reissue an authority to a public accountant whose authority has been revoked or suspended; and
Modify the suspension of or reissue any permit that has been revoked or suspended or that the board has previously refused to renew.
The board shall specify by rule the manner in which applications under this section are made; the time within which they are made; and the circumstances in which hearings will be held on the applications.
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History of Section.
P.L. 1995, ch. 159, § 2.
Except as permitted by the board pursuant to §
5-3.1-18(b)
, no person shall hold himself or herself out to the public as a certified public accountant or assume or use the designation “certified public accountant” or “CPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the person is a certified public accountant or CPA, unless that person has been issued a permit to practice under §
5-3.1-7
.
No entity shall provide attest or compilation services or assume or use the designation “certified public accountants” or “CPAs” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the practice unit is composed of certified public accountants or CPAs, unless:
The practice unit holds a permit to practice under §
5-3.1-9
;
Ownership of the firm is in accord with this chapter and rules promulgated by the board.
No person shall hold himself or herself out to the public as a public accountant, or assume or use the designation “public accountant” or “PA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the person is a public accountant or PA, unless that person holds an authority as a public accountant and a permit to practice in this state issued under §
5-3.1-7
. This subsection does not apply to those persons qualified under subsection (a) of this section to hold themselves out to the public as certified public accountants and to use the designation “certified public accountant” or “CPA.”
No entity shall provide attest or compilation services or assume or use the designation “public accountants” or “PAs” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the practice unit is composed of public accountants or PAs, unless the practice unit holds a permit to practice under §
5-3.1-9
.
No person or entity not holding a valid permit shall assume or use the title or designation “certified accountant,” “chartered accountant,” “enrolled accountant,” “licensed accountant,” “registered accountant,” “accredited accountant,” or any other title or designation likely to be confused with “certified public accountant” or “public accountant,” any of the abbreviations “CA,” “RA,” “LA,” “AA,” or similar abbreviation likely to be confused with “CPA” or “PA”; provided, that anyone who holds a permit to practice under §
5-3.1-7
may hold himself or herself out to the public as an “accountant” or “auditor.” The title “Enrolled Agent” or the abbreviation “EA” may only be used by those individuals so designated by the Internal Revenue Service. In addition, the board may at its discretion allow titles or abbreviations to be used that do not mislead the public and for which appropriate certification or accreditation by a national organization can be demonstrated.
No person or entity shall prepare or attempt to prepare, or sign, affix, or associate the person’s or entity’s name or any trade name used by him, her, or it in the person’s or entity’s business or profession or practice unit to any attest or compilation reports unless the individual holds a permit to practice under §
5-3.1-7
or §
5-3.1-8
, and unless the practice unit holds a permit to practice under §
5-3.1-9
.
No person or entity not holding a permit to practice under this chapter shall hold himself, herself, or itself out to the public as an “accountant” or “auditor,” whether or not the term is accompanied by any other description or designation, on any sign, card, or letterhead, or in any advertisement or directory.
No person holding a permit shall assume or use a professional or firm name or designation that is misleading about the legal form of the firm, or the persons who are partners, officers, members, managers, or shareholders of the firm, or about any other matter; provided, however, that names of one or more former partners, members, managers, or shareholders may be included in the name of a firm or its successor.
No person or entity shall hold himself, herself, or itself out to the public as being qualified for the practice of public accounting unless the person or entity holds a permit to practice under this chapter.
The provisions of subsections (a), (c), and (e) of this section do not prohibit any accountant licensed by a foreign country who holds an annual limited permit to engage in the practice of public accounting under §
5-3.1-8
from using the accounting designation by which he or she is known in his or her own country, translated into the English language, followed by the name of the country from which his or her certificate, license, or degree was issued, as required by §
5-3.1-8
.
Any person or practice unit found to have violated any provision of this section by a court of competent jurisdiction is liable to the board for reasonable attorney’s fees in connection with the proceeding in which the finding was made.
A licensee, practice unit, or affiliated entity shall not directly or indirectly for a commission, recommend or refer to a client any product or service, or for a commission, recommend or refer any product or service to be supplied by a client, or receive a commission, when the licensee, practice unit, or affiliated entity also performs for that client any attest or compilation services or reports. This prohibition applies during the period in which the licensee or practice unit or affiliated entity is engaged to perform any services listed above and the period covered by any historical financial statements involved in such listed services.
A licensee, practice unit, or affiliated entity who or that is not prohibited by this section from performing services for or receiving a commission, and who is paid or expects to be paid a commission, shall disclose that fact to any person or entity to whom the licensee, practice unit, or affiliated entity recommends or refers a product or service to which the commission relates. The disclosure must be made in writing contemporaneously with or prior to the referral or recommendation.
Any licensee, practice unit, or affiliated entity who or that accepts a referral fee for recommending or referring any service of a licensee to any person or entity or who pays a referral fee to obtain a client shall disclose the acceptance or payment to the client. The disclosure must be made, in writing, contemporaneously with or prior to the referral or recommendation.
For purposes of this subsection (l), an “affiliated entity” is defined as an entity in which the licensee, and/or any member and/or employee of the practice unit, has more than an aggregate twenty percent (20%) direct or indirect financial interest.
A licensee or practice unit in public practice who or that is not prohibited by this section from performing service for or receiving a commission shall comply with all applicable federal and state securities laws, rules promulgated thereunder, and registration requirements.
A licensee, practice unit, or affiliated entity shall not: perform for a contingent fee any professional services for, or receive such a fee from, a client for whom the licensee or practice unit performs any attest or compilation services or reports; or prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.
The prohibitions in subsection (l)(1) apply during the period in which the licensee is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.
Except as stated in the next sentence, a “contingent fee” is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this section, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies. A licensee’s fees may vary depending, for example, on the complexity of services rendered.
For purposes of this subsection (m), an “affiliated entity” is defined as any entity in which the licensee, or any member or employee of the practice unit, has more than an aggregate twenty percent (20%) direct or indirect financial interest.
Any licensee who receives a contingent fee pursuant to this section shall comply with all applicable federal and state securities laws, rules promulgated thereunder, and registration requirements.
Application of statute of limitations to actions for breach of duty in performing services of public accountant. 7 A.L.R.5th 852.
Failure to obtain occupational or business license as defense to tort action. 13 A.L.R.2d 157.
Liability of independent accountant to investors or shareholders. 48 A.L.R.5th 389.
License, failure of accountant to procure, as affecting validity or enforceability of contracts. 4 A.L.R. 1087; 30 A.L.R. 834; 42 A.L.R. 1226; 118 A.L.R. 646.
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5-3.1-17.
Other activities.
In addition to the activities set out in §
5-3.1-3(13)
, a licensee may engage in one or more kinds of management, advisory, or consulting services, and in the preparation of tax returns and the furnishing of advice on tax matters.
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History of Section.
P.L. 1995, ch. 159, § 2.
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5-3.1-18.
Exceptions — Acts not prohibited.
Nothing contained in this chapter shall be construed as prohibiting any person not a certified public accountant or public accountant from serving as an employee of or an assistant to a licensee; provided, that the employee or assistant shall not issue any accounting or financial statement or report over his or her name.
Nothing contained in this chapter shall be construed as prohibiting any person who is the holder of a certificate or permit issued by this state or any other state that has not been revoked or suspended by the board or board of accountancy of the other state from assuming or using the designation “certified public accountant” or “CPA” or any other title, designation, words, letters, sign, card, or device tending to indicate that the person is a certified public accountant; provided, that the provisions of this subsection shall not be construed to authorize the use of those designations in connection with the practice of public accounting in this state unless the person using the designations holds a permit to practice issued by the board.
Nothing contained in this chapter or in any other law of this state shall be construed as prohibiting a licensee or any employee of a licensee from disclosing any information in confidence to other licensees engaged in conducting peer reviews, or any of their employees or agents, in connection with peer reviews that are conducted under the auspices of a recognized professional association or under this chapter.
Nothing contained in this chapter or in any other law of this state shall be construed as prohibiting a licensee or any employee of a licensee from disclosing any information in confidence to any employee, representative, officer, or committee member of a recognized professional association or to the board or any of its employees or committees in connection with a professional ethics investigation held under the auspices of the professional association or the board.
The provisions of §
5-3.1-16(f)
and (g) do not prohibit any officer, employee, partner, or principal of any entity from affixing his or her signature to any statement or report in reference to the affairs of that entity with any wording designating the position, title, or office that he or she holds in that entity, or from describing himself or herself by the position, title, or office that he or she holds in the entity; nor do those provisions prohibit any act of a public official or a public employee in the performance of his or her duties as a public official or public employee.
Nothing contained in this chapter shall be construed as prohibiting any person or entity not holding a permit under this chapter from offering or rendering to the public bookkeeping services, including devising and installing systems; recording and presentation of financial information or data; preparing financial statements or similar services; preparation of tax returns; or the furnishing of advice on tax matters; provided, that no person or entity shall perform a report on any attest or compilation services nor shall any person or entity attempt to prepare or prepare a report in any manner having the appearance or import of any attest or compilation report enumerated in this subsection so as to mislead the public.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
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5-3.1-19.
Injunction against unlawful acts.
Whenever, in the judgment of the board, any person or entity has engaged, or is about to engage, in any acts or practices that constitute, or will constitute, a violation of this chapter, the board may make application to the superior court for an order enjoining those acts or practices. Upon a showing by the board that the person or entity has engaged, or is about to engage, in any of those acts or practices, an injunction, restraining order, or any other order that may be appropriate shall be granted by the court without bond. In any instance of the granting of an injunction or order by the superior court under this section, the court shall award the board reasonable attorney’s fees.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
Collateral References.
Application of statute of limitations to actions for breach of duty in performing services of public accountant. 7 A.L.R.5th 852.
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5-3.1-20.
Penalty for violations.
Any person or entity who or that violates any provision of this chapter shall be guilty of a misdemeanor, and upon conviction, shall be subject to:
In the case of an individual, a fine of not more than one thousand dollars ($1,000), or imprisonment for not more than one year, or both; or
In the case of an entity, a fine of not more than five thousand dollars ($5,000).
Whenever the board has reason to believe that any person or entity is liable to punishment under this section, it may certify the facts to the attorney general of this state who may, in his or her discretion, cause appropriate proceedings to be brought.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
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5-3.1-21.
Use of card, sign, or advertisement as evidence — Single act sufficient evidence.
The display or presentation of a card, sign, advertisement, or other printed, engraved, or written instrument or device bearing a person’s or entity’s name in conjunction with the words “certified public accountant,” “certified public accountants,” “public accountant,” or “public accountants,” or any abbreviation of those words, except as permitted by this chapter, is prima facie evidence in any action brought under §
5-3.1-19
or §
5-3.1-20
that the person or entity whose name is displayed caused or procured the display or presentation of that card, sign, advertisement, or other printed, engraved, or written instrument or device and that the person or entity is holding himself, herself, or itself out to the public as a certified public accountant or public accountant, or as a practice unit composed of certified public accountants and/or public accountants. In that action, evidence of the commission of a single act prohibited by this chapter is sufficient to justify an injunction, and a conviction need not be established for that purpose.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-3.1-22.
Ownership of accountants’ working papers.
All statements, records, schedules, working papers, memoranda, and any other data, including, but not limited to, a data bank, that are retained by a practice unit incident to or in the course of professional services rendered to clients, except reports submitted by the practice unit to a client, are and remain the property of that practice unit in the absence of an express agreement to the contrary between the practice unit and the client. No statement, record, schedule, working paper, memorandum, or other data shall be sold, transferred, or bequeathed, without the written consent of the client or his, her, or its personal representative or assignee, to anyone or any entity other than, in the case of a partnership or corporation, one or more of its surviving partners, shareholders, new partners, or new shareholders, or any organization resulting from the combination or merger of the practice unit, or any other successor in interest to the practice unit.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
No licensee or any employee of a licensee, including, but not limited to, clerks, paraprofessionals, and students under work-study programs on a paid or pro bono basis, shall disclose any confidential information obtained in the course of a professional engagement except with the written consent of the client or former client, or as disclosure of confidential information is permitted by subsection (c) or (d) of §
5-3.1-18
in connection with peer reviews or board investigations.
This section shall not be construed as limiting the authority of this state or of the United States or of an agency or court of this state or of the United States to subpoena and use the confidential information in connection with any investigation, public hearing, or other proceeding. Nor shall this section be construed as prohibiting a certified public accountant or public accountant whose professional competence has been challenged in a court of law or before an administrative agency from disclosing confidential information as part of a defense to the court action or administrative proceeding.
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History of Section.
P.L. 1995, ch. 159, § 2.
Collateral References.
Privileged Communications Between Accountant and Client — General Principles, Evidentiary Considerations, and Attorney-Client Privilege Implications. 26 A.L.R.7th Art. 3 (2018).
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5-3.1-24.
Construction.
If any provision of this chapter or the application of this chapter to anyone or to any circumstance is held invalid, the remainder of this chapter, or the application of that provision to others or other circumstances shall not be affected.
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History of Section.
P.L. 1995, ch. 159, § 2.
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5-3.1-25.
Repeal provisions — Effect of prior laws, rules, and regulations.
All other acts or parts of acts in conflict with this chapter are repealed; provided, that nothing contained in this chapter invalidates or affects any action taken under any law in effect prior to January 1, 2000; nor does it invalidate or affect any proceeding instituted under that law before January 1, 2000; nor does it invalidate the rules and regulations promulgated by the Rhode Island board of accountancy under the prior law, the rules and regulations (to the extent they are not inconsistent with the provisions of this chapter) to remain in full force and effect until new rules and regulations are promulgated by the board.
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History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1.
Chapter 4 Coal and Coke Dealers
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5-4-1.
License required.
It is unlawful for any person, firm, or corporation to sell or offer for sale in the state any quantities of coal or coke that exceed one thousand pounds (1,000 lbs.) without first obtaining a license from the director of labor and training as provided in §
5-4-2
.
Functions of department of labor and training, §
42-16.1-1
et seq.
Collateral References.
License tax, discrimination in. 99 A.L.R. 706.
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5-4-2.
Coal and coke license.
The director of labor and training may issue a coal and coke license for wholesale or retail authorizing the licensee or his or her agents or servants to sell and deliver or distribute coal or coke in quantities of more than one thousand pounds (1,000 lbs.) in any part of the state at wholesale or retail. The fee for this license shall be forty dollars ($40.00) for one yard office and one main office operated by the licensee and twenty dollars ($20.00) additional for each branch office or each added yard or yard office operated by the licensee. Every applicant for a license of this class shall furnish the director of labor and training with satisfactory evidence of the possession of or access to proper facilities for weighing and distributing coal or coke.
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5-4-3.
Issuance date and duration of licenses.
The license as provided in §
5-4-2
shall be issued as of the first day of December of each year and shall continue in full force and effect for one year, unless revoked by the director of labor and training as subsequently provided in this chapter, and may be renewed upon payment of the prescribed fee.
Veteran’s certificate, renewal on discharge, §
30-20-1
.
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5-4-4.
Disposition of licensing fees.
All moneys received for licenses by the director of labor and training under the provisions of this chapter shall be turned over to the general treasurer for the use of the state.
The director of labor and training shall keep a record of all licenses granted by him or her under the provisions of this chapter with the number of each; the name; residence and business address of the licensee; and the cities and towns for which each license is issued. Those records are open at all times to public inspection.
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5-4-6.
Sale by weight — Standards for ton.
All coal or coke sold or offered for sale by any licensee shall be sold by weight. Two thousand pounds (2,000 lbs.) avoirdupois shall be the standard of weight for the net ton, and two thousand two hundred forty pounds (2,240 lbs.) avoirdupois shall be the standard weight for the gross ton.
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5-4-7.
Sale in units of less than 100 pounds.
Coal and coke of one hundred pounds (100 lbs.) or less per unit shall be sold in bags, baskets, or other vessels or receptacles; provided, that coal or coke shall not be sold or offered for sale in bags, baskets, vessels, or receptacles in units of less than eighteen pounds (18 lbs.). Those bags, baskets, vessels, or receptacles must be plainly marked in solid letters of not less than three-fourths (3/4) of one inch in height, stating on them the weight of coal or coke that they contain and the name and address of the dealer putting up the coal or coke, together with the size and kind.
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5-4-8.
Statement accompanying deliveries of more than 100 pounds.
A statement upon a form approved by, and a copy of which shall be filed with, the director of labor and training, signed by the seller or the seller’s agent stating the seller’s name and business address; the name and address of the purchaser; the date of delivery; and the kind, size, and weight of the coal or coke, shall accompany the delivery of any coal or coke sold to consumers in the state in quantities in excess of one hundred pounds (100 lbs.) and shall be given to the purchaser or purchaser’s agent upon delivery of the coal or coke.
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5-4-9.
Marking of vehicles — Display of license.
Every vehicle used by a licensee or other person in connection with the sale or delivery of coal or coke in this state shall be marked in any manner that the director of labor and training requires, and each licensee shall display his or her license in a conspicuous place and manner at his or her principal place of business.
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5-4-10.
Director’s power to check weight of deliveries.
Whenever in this state coal or coke is being transported by a licensee or other person to a purchaser or consumer, the director of labor and training, or his or her agent or agents, may direct the person or persons having charge of that coal or coke to convey the coal or coke immediately to scales designated by the director of labor and training, or his or her agent or agents, and then the director, or his or her agent or agents, shall determine the quantity of that coal or coke and shall determine its weight, together with the tare weight, and shall direct the person or persons after unloading the coal or coke to return immediately to the scales where the original load was weighed and upon that return the director, or his or her agent or agents, shall determine the tare weight. The scales designated by the director, or his or her agent or agents, used as previously stated may be the public scales of any city or town or any other scales that have been tested and sealed and any scales as in the judgment of the director are most convenient; provided, that the provisions of this section do not apply to coal or coke while being transported in trains or cars operated by any railroad or street railroad authorized to do business in this state.
These sections (P.L. 1923, ch. 483, §§ 3, 8; P.L. 1935, ch. 2250, § 90; G.L. 1938, ch. 367, §§ 3, 8-10, 14; P.L. 1939, ch. 660, § 132; P.L. 1939, ch. 733, § 1; P.L. 1940, ch. 797, § 6; impl. am. P.L. 1941, ch. 1069, § 12; G.L. 1956, §§
5-4-11
— 5-4-17), concerning the advisory council and its functions and duties, were repealed by P.L. 1998, ch. 317, § 2, effective July 13, 1998.
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5-4-18.
Suspension or revocation of license.
The director of labor and training, after a hearing, may suspend or revoke any license issued under the provisions of this chapter for using or giving false or insufficient weight, in violation of any provisions of this chapter or any rule or regulation promulgated by the director of labor and training under this chapter.
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5-4-19.
Judicial review of decisions.
Any person aggrieved by any decision or order of the director of labor and training made pursuant to the provisions of this chapter may appeal to the superior court under the provisions of chapter 35 of title 42.
For rule prescribing review of administrative action, see Super. Ct. R. Civ. P. 80.
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5-4-20.
Penalty for violations — Prosecution.
Whoever violates any provision of this chapter, or whoever is guilty of fraud or deceit in the weighing, selling, or delivering of coal or coke, or whoever willfully, by himself or herself or his or her servant, agent, or employee, sells or delivers or distributes or offers to sell, deliver, or distribute any coal or coke that does not comply with the universal trade custom of standards and specifications shall be punished by a fine of not less than one hundred dollars ($100) or more than five hundred dollars ($500). In any proceeding to enforce the provisions of this chapter, the director of labor and training shall not be required to enter into any recognizance or to give surety for costs.
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5-4-21.
Fuels to which chapter applicable.
The provisions of this chapter shall be construed and deemed to apply to all anthracite and bituminous coal and to all coke and other fuels containing coal or coke that may be sold or offered for sale in this state. The term “coal,” as used in this chapter, includes both anthracite and bituminous coal and other fuels containing coal.
For the purpose of paying necessary expenses in carrying out the provisions of this chapter, the general assembly shall annually appropriate any sum that it deems necessary; and the state controller is directed to draw his or her orders upon the general treasurer for the payment of that sum, or so much of it as may periodically be required, upon receipt by him or her of proper vouchers approved by the director of labor and training.
If any clause, sentence, paragraph, or part of this chapter is for any reason adjudged by any court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate the remainder of the chapter, but shall be confined in its operation to the clause, sentence, paragraph, or part, directly involved in the controversy in which that judgment has been rendered.
This chapter may be cited as the “Private Detective Act.”
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History of Section.
P.L. 1987, ch. 479, § 2.
Repealed Sections.
The former chapter (G.L. 1896, ch. 106, §§ 1, 2; G.L. 1909, ch. 127, §§ 1-3; G.L. 1923, ch. 133, §§ 1-3; G.L. 1938, ch. 368, §§ 1-3; impl. am. P.L. 1956, ch. 3721, § 1; G.L. 1956, §§
5-5-1
—
5-5-4
), consisting of §§
5-5-1
—
5-5-4
and concerning detectives, was repealed by P.L. 1987, ch. 479, § 1, effective January 1, 1988. Section 2 of P.L. 1987, ch. 479 enacted the present chapter consisting of §§ 5-5-1 —
5-5-20
and concerning private detectives, effective January 1, 1988.
Comparative Legislation.
Private detectives:
Conn.
Gen. Stat. § 29-153 et seq.
Mass.
Ann. Laws ch. 147, § 22 et seq.
Collateral References.
Regulation of private detectives, private investigators, and security agencies. 86 A.L.R.3d 691.
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5-5-2.
Definitions.
As used in this chapter:
“Applicant” means any person who has applied for permission to engage in any act or activity that is regulated pursuant to the provisions of this chapter.
“Computer forensic specialist” means a person who holds a professional certification as a computer examiner and who interprets, evaluates, tests, or analyzes preexisting data from computers, computer systems, networks, or other electronic media, provided to them by another person who owns, controls, or possesses the computer, computer system, network, or other electronic media.
“License” means any license required by this chapter.
“License fee” means any moneys required by law to be paid for the issuance or renewal of any license required by the regulations.
“Local licensing authority” means the town councils of license boards of the several towns, the mayor and city council or license bureau of a city.
“Private detective” means a person who is hired for the purpose of conducting investigations involving:
Inquiries into unsolved crimes;
Clandestine surveillance;
The search for missing persons; and
The search for lost or stolen property.
Words in the singular include the plural and the plural includes the singular.
In order to be eligible for a license, an applicant must:
Be a citizen of the United States or a resident alien;
Not have been convicted in any jurisdiction of a felony;
Not have had any previous private investigator license or registration revoked or application for that license or registration denied by the appropriate authority of any local licensing authority;
Not have been declared by any court of competent jurisdiction incompetent by reason of mental defect or disease unless the court has subsequently determined that his or her competency has been restored;
Not suffer from habitual drunkenness or from narcotics addiction or dependence;
Be of good moral character; and
Have experience that has been gained through:
At least five (5) years’ experience as an investigator or as a police officer with a state, county, or municipal police department or with an investigative agency of the United States of America or of any state, county, or municipality; or
A degree in criminal justice from an accredited college or university; or
Employment by a private detective as an investigator for at least five (5) years; or
Substantively equivalent training or experience.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-4.
License application.
Any person engaged as a private detective prior to January 1, 1988, and who continues to be engaged as of January 1, 1988, may apply for a private detective license with the local licensing authority where his or her principal place of business is located. Persons presently licensed shall be granted private detective licenses from the local licensing authority upon application and verification that he or she has not been convicted in any jurisdiction of a felony. This initial application will be treated as a renewal of a license. Subsequent applications for renewal of his or her license are governed by §
5-5-6
.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-5.
Investigation and action on application.
After an examination of the application and any further inquiry and investigation that is deemed proper and necessary as to the good character, competency, and integrity of the applicant and the persons named in the application, the local licensing authority shall as soon as practicable issue a license in a form prescribed by it to the applicant or notify the applicant of a denial of the license application. Persons shall file their applications with the local licensing authority where his or her principal place of business is located.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-6.
Grounds for denial of application for license or renewal of license.
The local licensing authority shall deny the application for or renewal of license if it finds that the applicant:
Has violated any provisions of this chapter or rules and regulations promulgated under this chapter; or
In the case of the applicant, commits any act that would disqualify him or her under §
5-5-10
or where the applicant has failed to meet the qualifications of this chapter;
Practices fraud, deceit, or misrepresentation;
Makes a material misstatement in the application for or renewal of a license; or
Demonstrates incompetence or untrustworthiness in actions affecting the conduct of the business required to be licensed under this chapter.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-7.
Procedure for approval or denial of application — Hearings.
The local licensing authority, in approving or denying an application for a license or renewal of a license, shall proceed as follows:
If the application is approved, the local licensing authority shall issue a license in the form provided in this chapter;
If the application is denied, the local licensing authority shall notify the applicant or licensee, in writing, of the denial and state the reasons for the authority’s action;
Within fifteen (15) days from the receipt of notice, the applicant or licensee may request a hearing in writing;
If a request for a hearing is received in a timely manner, the local licensing authority shall set a date for a hearing and notify the parties of the time and place of the hearing;
All hearings shall be held in accordance with the provisions of chapter 35 of title 42.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-8.
Renewal of licenses.
Each license shall expire one year after its date of issuance. Subject to the power of the local licensing authority to deny, revoke, or suspend a license, any license shall be renewable by the local licensing authority for the next one-year period upon proper application for renewal payment of license fees. An application for renewal of a license must be received by the local licensing authority on a form provided by the authority not less than thirty (30) days prior to the expiration date of the license, and the authority shall promptly notify the licensee of the authority’s intent to refuse to renew the license. The licensee may, within fifteen (15) days after receipt of the notice of intent to refuse to renew a license, request a hearing on the refusal in the manner prescribed by this chapter. A licensee is permitted to continue to engage in business while its renewal application is pending. Upon renewal of any license, the local licensing authority shall issue a renewal license.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-9.
Registration and license fees.
The registration and license fee for a private detective is one hundred fifty dollars ($150) annually.
No license issued pursuant to the provisions of this chapter shall be assigned or transferred, either by operation of law or otherwise.
With good cause, the local licensing authority may extend the period of time for filing the application required by this subsection.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-10.
Grounds for suspension and revocation of licenses.
A license may be suspended or revoked if the licensee:
Violates any provisions of this chapter or rules and regulations promulgated under this chapter;
Practices fraud, deceit, or misrepresentation;
Makes a material misstatement in the application for or renewal of the license; or
Commits any act that would disqualify the qualifying agent.
After the licensee has exhausted the right of appeal or, if the licensee does not seek a hearing, the licensee shall immediately cease to operate the business for the time period provided in the order of suspension or permanently in the case of revocation and shall notify all of its clients of the revocation or suspension and maintain a copy of the notices in its business records.
Under circumstances in which the local licensing authority determines that the public health, welfare, or safety may be jeopardized by the termination of a licensee’s services, that local licensing authority may, upon the authority’s own motion or upon application by the licensee or any party affected by the termination, extend the time for the termination of the licensee’s operations, subject to any reasonable, necessary, and proper conditions or restrictions that the authority deems appropriate.
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History of Section.
P.L. 1987, ch. 479, § 2; P.L. 2019, ch. 308, art. 1, § 4.
Effective Dates.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
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5-5-11.
Surrender of license.
Each license shall be surrendered to the local licensing authority within seventy-two (72) hours after it has been revoked or after the licensee ceases to do business pursuant to an order of suspension. If the local licensing authority or a court of competent jurisdiction has pending before it any matter relating to the renewal, revocation, or transfer of a license, the licensee shall not be required to surrender the license until the matter has been adjudicated and all appeals have been exhausted; provided, that a stay has been obtained in accordance with the provisions of this chapter pertaining to judicial review.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-12.
Change in status of licensee.
The licensee shall notify the local licensing authority, in writing, within five (5) days of any material change in the information previously furnished or required to be furnished to the local licensing authority or any occurrence that could reasonably be expected to affect the licensee’s privilege to a license under this chapter.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-13.
Uniform and equipment.
No individual licensed by, registered by, or subject to the provisions of this chapter shall wear or display any insignia, patch, or pattern that indicates or tends to indicate that he or she is a law enforcement officer of the federal government, a state, or any political subdivision of the state or that contains or includes the word “police” or the equivalent of the word, or is similar in wording to any law enforcement agency in this state. All badges, shields, and any other devices shall not indicate or tend to indicate that it represents that of any law enforcement officer of the federal government, a state, or any other political subdivision of the state. This entire wording must be approved by the local licensing authority.
No person, while performing any activities licensed by this chapter, shall have or utilize any vehicle or equipment displaying the words “police,” “law enforcement officer,” or the equivalent of the word(s), or have any sign, shield, marking, accessory, or insignia that indicates that the vehicle is a vehicle of a public law enforcement agency. All wording must indicate private detective or private investigating agency and be approved by the local licensing authority.
No licensee shall, by the use of any letterhead, advertisement, or other printed matter, or in any other manner, represent that he or she is an instrumentality or agency of the federal government or of the state or political subdivision of the state.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-14.
Bonding requirements.
Any licensee or private detective shall deliver to the local licensing authority, or its designee, a bond with a surety company authorized to do business in the state conditioned for the benefit of any person injured by willful, malicious, or wrongful acts of the licensee, which, in the case of an individual, shall be five thousand dollars ($5,000).
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History of Section.
P.L. 1987, ch. 479, § 2.
It is unlawful for any person to knowingly commit any of the following:
Provide any service required to be licensed under this chapter without possessing a valid license;
Employ any individual to perform the duties of an unarmed employee or armed employee who has not first complied with all provisions of this chapter and the regulations in all respects;
Falsely represent that a person is the holder of a valid license; or
Possess a license or identification card issued to another person.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-16.
Identification cards.
The local licensing authority shall prescribe by regulation the form of identification cards that may be carried by persons licensed under this chapter. Every person licensed under this chapter shall be given a permanent licensed number and shall be issued an identification card that is approximately two and one-half (21/2) inches wide and three and one-half (31/2) inches long and bears on it the number assigned to the licensee; the full name; date of birth; residence address; brief description of the licensee; his or her fingerprints and photograph; and a space upon which the licensee writes his or her usual signature with pen and ink, or a facsimile of the signature.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-17.
Licensee business procedures.
Any licensee shall, on notice from the local licensing authority, discontinue any advertising or the use of any advertisement, seal, or card that, in the opinion of the local licensing authority, tends to mislead the public. Failure to comply with that order of the local licensing authority shall be cause for revocation of the license.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-18.
Judicial review.
Any person aggrieved by a final decision or order of the local licensing authority made after a hearing or rehearing, whether or not a petition for a hearing was filed, may obtain judicial review of the decision by appeal to the superior court in accordance with chapter 35 of title 42.
Filing of an appeal does not stay enforcement of the decision or order of the local licensing authority unless the stay is obtained from the court upon application in accordance with the rules of court or from the superintendent upon any terms and conditions that he or she deems proper.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-19.
Obligation to report criminal violations.
All felonies that are discovered by persons licensed and registered under this chapter shall be reported immediately to the Rhode Island state police, private investigative unit, or to the local police department where the crime occurred.
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History of Section.
P.L. 1987, ch. 479, § 2.
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5-5-20.
Exemptions.
Nothing in this chapter includes the activities of any person employed by any federal or state agency or any city or town as an investigator. Nothing in this chapter shall be construed to require a detective’s license in order to interview parties and/or witnesses in legal matters.
Nothing in this chapter shall be construed to require a detective’s license of any of the following:
An agent, employee, or assistant to a licensed “detective” whose duties are in connection with the regular and customary business of his or her contracting agency;
A person engaged in earning his or her livelihood by genealogical work and the compilation of family history while so engaged;
An insurance investigator;
A credit reporting bureau or agency whose business is principally the furnishing of information as to business and financial standing and credit responsibility; or
An individual employed as a computer forensic specialist who holds professional certification as a computer examiner.
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5-5-21.
Engaging in business without a license.
Whoever without a license engages in the general business of a private detective, or holds him or herself out as a private detective, or pretends to be a detective police officer, shall be punished by a fine of not less than two hundred dollars ($200) nor more than five hundred dollars ($500), or imprisonment in the adult correctional institutions not exceeding six (6) months, or by both fine and imprisonment. Nothing contained in this section applies to a detective of another state coming within this state in the performance of his or her duties, for a temporary period and on a specific matter.
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History of Section.
P.L. 1988, ch. 286, § 1.
Chapter 5.1 Private Security Guard Businesses
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5-5.1-1.
Short title.
This chapter may be cited as the “Private Security Guard Act.”
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History of Section.
P.L. 1987, ch. 112, § 1.
Collateral References.
Actions of security service company’s employee as rendering company liable under contract to protect persons or property. 83 A.L.R.4th 1150.
Liability of security services company to injured employee as beneficiary of security services contract between company and employer. 75 A.L.R.4th 836.
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5-5.1-2.
Definitions.
As used in this chapter:
“Applicant” means any person who on his or her own behalf or on behalf of another has applied for permission to engage in any act or activity that is regulated under the provisions of this chapter.
“Attorney General” means the attorney general of the state of Rhode Island.
“Branch office” means any office of a licensee within the state other than its principal place of business within the state.
“Business” means any corporation, company, association, operation, firm, partnership, institution, trust, or other form of business association, as well as a natural person. One client or customer constitutes a business.
“Employee” means any natural person employed by the businesses defined in this section. It does not include secretaries and clerical workers.
“License” means any license required by this chapter.
“Licensee” means any person to whom a license is granted in accordance with the provisions of this chapter.
“License fee” means any moneys required by law to be paid for the issuance or renewal of any license required by the regulations.
“Person” means any corporation, company, association, operation, firm, partnership, institution, trust, or other form of business association, as well as a natural person.
“Private security guard business” includes:
A business that furnishes for hire or reward watchmen, guards, bodyguards, private patrolmen, or other persons, to protect persons or real and personal property;
A business that furnishes for hire or reward any trained dog or other animal with or without an accompanying handler for the purpose of providing security.
“Publicly traded corporation” means any corporation or other legal entity, except a natural person, that:
Has one or more classes of security registered pursuant to § 12 of the Securities Exchange Act of 1934 (15 U.S.C. § 78l); or
Is an issuer subject to § 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. § 78o(d)).
Words and terms: tense, number, and gender. In construing the provisions of this chapter except when otherwise plainly declared or clearly apparent from the context:
Words in the present tense include the future tense;
Words in the masculine include the feminine and neuter genders; and
Words in the singular include the plural and the plural includes the singular.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-3.
Powers and duties of the attorney general.
The attorney general, or his or her designee, shall have general responsibility and authority for the implementation of this chapter, as subsequently provided, including, without limiting the responsibility and authority:
To process all applications for any license provided under this chapter;
To investigate the qualifications of each applicant before any license is issued pursuant to the provisions of this chapter and to obtain a criminal background check on any applicants from the division of criminal identification within the department of the attorney general;
To hear and decide all license applications, which includes the power to grant or deny the application and revoke or suspend the license;
To promulgate any rules and regulations that in his or her judgment are necessary to fulfill the policies of this chapter;
To investigate violations of this chapter and regulations promulgated under this chapter; and
To collect all license and registration fees imposed by law and forward the fees immediately to the general treasurer.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-4.
Regulations.
The attorney general is authorized to adopt, amend, or repeal any regulations, consistent with the policy and objectives of this chapter, that he or she deems necessary or desirable for the public interest in carrying out the provisions of this chapter.
The regulations shall be adopted, amended, and repealed in accordance with the provisions of chapter 35 of title 42.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-5.
Subpoenas, oaths, and contempt.
The attorney general, or his or her designee, shall have the power and authority to issue subpoenas and to compel the attendance of witnesses at any place within this state; to administer oaths; and to require testimony under oath. The attorney general may serve his or her process or notices in a manner provided for the service of process and notice in civil actions in accordance with the rules of court.
If a witness refuses to obey a subpoena or to give any evidence relevant to proper inquiry by the attorney general, the attorney general may petition a court of competent jurisdiction within the state to compel the witness to obey the subpoena or to give the evidence. The court shall promptly issue process to the witness and hold a hearing on the petition as soon as possible. If the witness refuses, without reasonable cause or legal grounds, to be examined or to give evidence relevant to proper inquiry by the attorney general, the court may cite the witness for contempt.
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History of Section.
P.L. 1987, ch. 112, § 1.
The attorney general, or his or her designee, shall have authority, with warrant:
To inspect and examine the principal place of business, each bureau, agency, subagency, office, or branch office for which a license is sought or has been issued;
To inspect, examine, and audit all books, records, and documents pertaining to the licensee’s operation; and
To inspect and examine employees and records at site locations of operations under the controls entered into by the agency.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-7.
License to conduct business — Violation.
No person, whether or not he or she is a resident of the state, shall engage in the private security guard business without first obtaining from the attorney general a license to conduct the business, as subsequently provided. No person shall conduct the business under the license of another person nor shall any person lease or sublease a license to another person; provided, that this provision does not apply to any person conducting the business under the license of another person, or who is the lessee or sublessee of a license of another person as of July 10, 1989. A license entitles the holder to conduct the businesses defined in §
5-5.1-2(a)
and (b). Any person who violates any of the provisions of this section is guilty of a felony.
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History of Section.
P.L. 1987, ch. 112, § 1; P.L. 1989, ch. 522, § 1.
Every applicant, or in the case of a partnership each partner, or in the case of a corporation each officer and general, and each shareholder owning a ten percent (10%) or greater interest in the applicant, provided, the applicant is not a publicly traded corporation, shall meet the following qualifications before it may engage in any business licensed under this chapter:
Be eighteen (18) years of age;
Be a citizen of the United States or a resident alien;
Not have been convicted in any jurisdiction of a felony;
Not have had his or her license or registration revoked or application for the license or registration denied by the attorney general or by the appropriate authority of any other jurisdiction;
Not have been declared by any court of competent jurisdiction incompetent by reason of mental defect or disease and not having been restored;
Not suffer from habitual drunkenness or from narcotics addiction or dependence; and
Be of good moral character.
A corporation seeking a license shall be incorporated under the laws of this state or shall be qualified to do business within this state with a valid certificate of authority issued by the secretary of state and an agent for service of process designated as required by law.
With verification of no criminal background as established in subsection (a) of this section, any person engaged in the private security guard industry, prior to January 1, 1988, and who continues to be engaged as of January 1, 1988, may apply for a security agent license. This initial application will be treated as a renewal of a license.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-9.
Investigation and action on application.
After an examination of the application and any further inquiry and investigation that he or she deems proper and necessary as to the good character, competency, and integrity of the applicant and the persons named in the application, the attorney general shall as soon as practicable issue a license in a form prescribed by him or her to the applicant or notify the applicant of a denial of the license application.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-10.
Grounds for denial of application for license or renewal of license.
The attorney general shall deny the application for or renewal of a license if he or she finds that the applicant, or the qualifying agent, or any of the applicant’s partners, officers, generals, or shareholders owning a ten percent (10%) or greater interest in the applicant, provided the applicant is not a publicly traded corporation, does any of the following:
Violates any provisions of this chapter or rules and regulations promulgated under this chapter;
In the case of the qualifying agent, commits any act that would disqualify the qualifying agent under §
5-5.1-8
and in the case of the applicant, or applicant’s partners, officers, generals, or shareholders owning a ten percent (10%) or greater interest in the applicant, provided the licensee is not a publicly traded corporation, has failed to meet the qualifications of §
5-5.1-8
;
Practices fraud, deceit, or misrepresentation;
Makes a material misstatement in the application for or renewal of a license; or
Demonstrates incompetence or untrustworthiness in actions affecting the conduct of the business required to be licensed under the chapter.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-11.
Procedure for approval or denial of application — Hearings.
The procedure of the attorney general in approving or denying an application for a license or renewal of the license shall be as follows:
If the application is approved, the attorney general shall issue a license in the form provided in this chapter;
If the application is denied, the attorney general shall notify the applicant or licensee, in writing, of the denial and state the reasons for his or her action;
Within fifteen (15) days from the receipt of notice, the applicant or licensee may request a hearing in writing;
If a request for a hearing is received in a timely manner, the attorney general shall set a date for a hearing and notify the parties of the time and place of the hearing;
All hearings shall be held in accordance with the provisions of chapter 35 of title 42.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-12.
Renewal of licenses.
Each license shall expire two (2) years after its date of issuance. Subject to the power of the attorney general to deny, revoke, or suspend a license, any license shall be renewable by the attorney general for the next two-year (2) period upon proper application for renewal payment of license fees. An application for renewal of a license must be received by the attorney general on a form provided by him or her not less than thirty (30) days prior to the expiration date of the license. He or she shall promptly notify the licensee of his or her intent to refuse to renew the license. The licensee may, in fifteen (15) days after receipt of that notice of intent to refuse to renew a license, request a hearing on the refusal in the manner prescribed by §
5-5.1-11
. A licensee shall be permitted to continue to engage in business while its renewal application is pending. Upon renewal of any license the attorney general shall issue a renewal license.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-13.
Registration and license fees.
The registration and license fee for a private security guard business shall be four hundred dollars ($400) biennially.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-14.
Nontransferability of license.
No license issued pursuant to the provisions of this chapter shall be assigned or transferred, either by operation of law or otherwise.
If a licensee dies, becomes disabled, or ceases to engage in the business, the successor, heir, devisee, or personal representative of the licensee shall, within thirty (30) days of the death, disablement, or other termination of operation by the original licensee, comply with all requirements of this chapter regarding application for a license.
If a sale, assignment, transfer, merger, or consolidation of a business licensed under this chapter is consummated, the purchaser, assignee, transferee, surviving, or new corporation who or that is not already a licensee shall immediately comply with all requirements of this chapter regarding application for a license. The purchaser, assignee, transferee, surviving, or new corporation is subject to all of the requirements of this chapter to the extent the requirements are applicable and may continue the operation of the business until notified by the attorney general of its final decision on the new application for a license.
With good cause, the attorney general may extend the period of time for filing the application required by subsections (b) and (c) of this section.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-15.
Grounds for suspension and revocation of licenses.
The attorney general may suspend or revoke any license issued under this chapter in the manner subsequently prescribed if the licensee or any of its partners, officers, generals, and shareholders owning a ten percent (10%) or greater interest in the license, provided the licensee is not a publicly traded corporation, and the qualifying agent does any of the following:
Violates any provisions of this chapter or rules and regulations promulgated under this chapter;
Practices fraud, deceit, or misrepresentation;
Makes a material misstatement in the application for or renewal of the license;
In the case of the qualifying agent, commits any act that would disqualify the qualifying agent under §
5-5.1-8
and in the case of the licensee, or any of its partners, officers, generals, and shareholders owning a ten percent (10%) or greater interest in the licensee, provided the licensee is not a publicly traded corporation, fails to meet the qualifications of §
5-5.1-8
; or
Demonstrates incompetence or untrustworthiness in actions affecting the conduct of the business required to be licensed under this chapter.
Prior to suspension or revocation of a license, the attorney general shall promptly notify the licensee of his or her intent to issue an order for revocation or suspension, stating the grounds for revocation or suspension. Within fifteen (15) days of receipt of notice of intent to revoke or suspend from the attorney general, the licensee may request a hearing in writing.
If a request for a hearing is received in a timely manner, the attorney general shall set a date for a hearing and notify the parties of the time and place of the meeting.
All hearings shall be held in accordance with the provisions of chapter 35 of title 42.
After the licensee has exhausted the right of appeal or, if the licensee does not seek a hearing, the licensee shall immediately cease to operate the business for the time period provided in the order of suspension or permanently in the case of revocation and shall notify all of its clients of the revocation or suspension and maintain a copy of the notices in its business records.
Under circumstances in which the attorney general determines that the public health, welfare, or safety may be jeopardized by the termination of a licensee’s services, the attorney general may, upon his or her own motion or upon application by the licensee or any party affected by the termination, extend the time for the termination of the licensee’s operations, subject to any reasonable, necessary, and proper conditions or restrictions that he or she deems appropriate.
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History of Section.
P.L. 1987, ch. 112, § 1; P.L. 2019, ch. 308, art. 1, § 5.
Effective Dates.
P.L. 2019, ch. 308, art. 2, § 16, provides that the amendment to this section by that act takes effect on December 31, 2019.
Collateral References.
Actions of security service company’s employee as rendering company liable under contract to protect persons or property. 83 A.L.R.4th 1150.
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5-5.1-16.
Surrender of license.
Each license shall be surrendered to the attorney general within seventy-two (72) hours after it has been revoked or after the licensee ceases to do business pursuant to an order of suspension. If the attorney general or a court of competent jurisdiction has pending before it any matter relating to the renewal, revocation, or transfer of a license, the licensee shall not be required to surrender the license until the matter has been adjudicated and all appeals have been exhausted; provided that a stay has been obtained in accordance with the provisions of this chapter pertaining to judicial review.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-17.
Change in status of licensee.
The licensee shall notify the attorney general, in writing, within five (5) days of:
Any change in identity of the licensee, or any of its partners, directors, officers, and shareholders owning a ten percent (10%) or greater interest in the licensee, provided the licensee is not a publicly traded corporation. Any substitute in the persons enumerated must satisfy all requirements of §§
5-5.1-8
and
5-5.1-13
and be approved, in writing, by the attorney general; and
Any material change in the information previously furnished or required to be furnished to the attorney general or any occurrence that could reasonably be expected to affect the licensee’s privilege to a license under this chapter.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-18.
Registration.
Except as provided in this chapter, no person shall perform the functions and duties of an employee of a business required to be licensed under this chapter in this state without first having been registered or licensed. The attorney general shall keep and make available for public inspection a list of all persons who have been registered or licensed and the name of the company employing the person at the time of registration or licensure.
No holder of any unexpired license issued pursuant to this chapter shall knowingly employ any person who has been convicted of a felony in connection with his or her or its business in any capacity. Should the holder of an unexpired license falsely state or represent that a person is or has been in his or her employ, that false statement or misrepresentation is sufficient cause for the revocation of the license.
No person shall be employed by any holder of a license until he or she has executed and furnished to the license holder a verified statement, to be known as “employee’s registration statement,” stating:
His or her full name, age, residence address, and place and date of birth;
The country of which he or she is a citizen;
The business or occupation engaged in for the five (5) years immediately preceding the date of the filing of the statement, stating the place or places where the business or occupation was engaged in, and the name or names of any employers;
That he or she has not been convicted of a felony; and
Any further information that the attorney general may by rule require to show the good character, competency, and integrity of the person executing the statement.
All holders of a license shall be allowed to obtain a criminal background check on any employee or prospective employee from the division of criminal identification for a fee determined by the department of the attorney general.
If any holder of a license files with the attorney general the “employee’s statement” of a person other than the person employed, he or she is guilty of a felony.
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History of Section.
P.L. 1987, ch. 112, § 1; P.L. 1989, ch. 522, § 1; P.L. 2021, ch. 400, § 2, effective July 13, 2021; P.L. 2021, ch. 401, § 2, effective July 13, 2021.
Compiler's Notes.
P.L. 2021, ch. 400, § 2, and P.L. 2021, ch. 401, § 2 enacted identical amendments to this section.
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5-5.1-19.
Uniform and equipment.
No individual licensed by, registered by, or subject to the provisions of this chapter shall wear or display any insignia, patch, or pattern that indicates or tends to indicate that he or she is a law enforcement officer of the federal government, a state, or any political subdivision of the state or that contains or includes the word “police” or the equivalent of that word, or is similar in wording to any law enforcement agency in this state. All badges, shields, and any other devices shall not indicate or tend to indicate that it represents that of any law enforcement officer of the federal government, a state, or any other political subdivision of the state. This entire wording must be approved by the attorney general.
No person while performing any activities of a business licensed by this chapter shall have or utilize any vehicle or equipment displaying the words “police,” “law enforcement officer,” or the equivalent of these words, or have any sign, shield, marking, accessory, or insignia that indicates that the vehicle is a vehicle of a public law enforcement agency. This entire wording must be approved by the attorney general.
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History of Section.
P.L. 1987, ch. 112, § 1.
The attorney general shall prescribe by regulation the form of identification cards that may be carried by persons licensed under this chapter.
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History of Section.
P.L. 1987, ch. 112, § 1.
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5-5.1-21.
Licensee business procedures.
Any licensee shall, on notice from the attorney general, discontinue any advertising or the use of any advertisement, seal, or card that, in the opinion of the attorney general, tends to mislead the public. Failure to comply with this order of the attorney general is cause for revocation of the license.
No licensee shall, by the use of any letterhead, advertisement, or other printed matter, or in any manner, represent that he or she is an instrumentality or agency of the federal government or of the state or political subdivision of the state.
No licensee shall conduct a business under a trade name until he or she has obtained the written authorization of the attorney general to do so. The attorney general shall not authorize the use of a trade name that, in his or her opinion, is similar to that of a public office or agency, or of that used by another licensee that the public may be confused or misled by the trade name, except that this provision does not apply to the continued use of a trade name by a corporation that:
Was commercially using that trade name in good faith on December 31, 1987; and
Had commercially used that trade name in good faith continuously for a period of more than one year prior to December 31, 1987.
The authorization shall require, as a condition precedent to the use of the name, the filing of a certificate of doing business under the name with the city or town clerk of the city or town where the licensee’s principal place of business is located and with the secretary of state in the manner provided by law.
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History of Section.
P.L. 1987, ch. 112, § 1; P.L. 1989, ch. 297, § 1.
A licensee of a private security guard business shall file with the attorney general a certificate of insurance evidencing comprehensive general liability coverage for bodily injury, personal injury, and property damage with endorsements for assault and battery and personal injury, including false arrest, libel, slander, and invasion of privacy, in the minimum amount of three hundred thousand dollars ($300,000) for bodily or personal injury and one hundred thousand dollars ($100,000) for property damage. A licensee shall also file endorsements for damage to property in their care, custody, and control and for errors and omissions. The certificate shall provide that the insurance shall not be modified or cancelled unless thirty (30) days’ prior notice is given to the attorney general. A licensee must be insured by a carrier licensed in this state.
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History of Section.
P.L. 1987, ch. 112, § 1.